Updates
Added by St. 2026, c. 101, §§ 18 and 20, applicable for taxable years beginning on or after January 1, 2026; repealed effective for taxable years ending on or after December 31, 2030.
(a)
As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:
“CORSIA”, the Carbon Offsetting and Reduction Scheme for International Aviation.
“Division”, the aeronautics division within the Massachusetts Department of Transportation established in section 59 of chapter 6C.
“Economic operator”, an entity involved in the production, processing, distribution, trading or use of sustainable aviation fuel within the supply chain.
“GHG emissions”, gases emitted into the atmosphere, either naturally or as a result of human activities, which trap heat in the Earth’s atmosphere, including, but not limited to, CO2 emissions arising from the production, distribution and combustion of aviation fuel.
“ICAO”, the International Civil Aviation Organization.
“Person”, a natural person, corporation, association, partnership or other legal entity.
“Proof of sustainability” or “POS”, a document issued by an economic operator that is certified by at least 1 of the independent sustainability certification schemes approved through the ICAO’s CORSIA, which confirms that a given batch of sustainable aviation fuel meets the requirements for sustainability and GHG emissions savings under the certification scheme or regulation promulgated or sponsored by such organization for the purpose of compliance with CORSIA.
“Qualified mixture”, as defined in subsection (c) of section 40B of the Internal Revenue Code.
“Sustainable aviation fuel”, liquid fuel that: (i) consists of synthesized hydrocarbons and: (A) meets the requirements of the ASTM International Standard D7566; and (B) when blended with fossil fuel meets the provisions of ASTM International Standard D1655; (ii) is derived from biomass resources, waste streams, renewable energy sources or gaseous carbon oxides; (iii) is not derived from any palm derivatives; and (iv) for the fuel production pathway for the sustainable aviation fuel, achieves at least a 50 per cent lifecycle greenhouse gas emissions reduction in comparison with petroleum-based jet fuel, as determined by a test that shows: (1) that the fuel production pathway achieves at least a 50 per cent reduction in GHG emissions intensity relative to fossil jet fuel considering the attributional core lifecycle emissions and the induced land use change values as determined through the lifecycle methodology for sustainable aviation fuels adopted by the ICAO with the agreement of the United States; or (2) that the fuel production pathway achieves at least a 50 per cent reduction in GHG emissions intensity relative to fossil jet fuel considering the attributional core lifecycle emissions and the induced land use change values as determined through the most recent version of Argonne National Laboratory’s GREET model, inclusive of agricultural practices and carbon capture and sequestration.
“Taxpayer”, a person subject to the excise imposed by this chapter.
(b)
(1)
To defray the excise paid under chapter 64J, a taxpayer may be allowed a nonrefundable credit against the excise imposed by this chapter in an amount equal to the lesser of: (i) the amount of excise paid under said chapter 64J; and (ii) the product of the number of gallons of sustainable aviation fuel included in a qualified mixture, multiplied by $1.50 or such other number that results from the calculation in paragraph (2), as documented on a POS provided by the taxpayer, that the sustainable aviation fuel is purchased for use as fuel in an aircraft departing from an airport in the commonwealth.
(2)
The amount of the credit per gallon of sustainable aviation fuel allowed under this section shall increase by $0.015 for each additional 1 per cent reduction in life-cycle greenhouse gas emissions above 50 per cent, as determined in the same manner as provided under clause (iv) of the definition of sustainable aviation fuel; provided, however, that the maximum amount of the credit per gallon of sustainable aviation fuel allowed under this section shall not exceed $2.00 per gallon.
(3)
Nothing in this section shall limit the authority of the commissioner to make adjustments to a taxpayer’s liability upon audit or limit any other legal remedies available to the commissioner or the commonwealth against said taxpayer.
(c)
(1)
The division shall authorize the tax credits under this section. Any amount of the tax credit that exceeds the tax due for a taxable year may be carried forward by the taxpayer to any of the 5 subsequent taxable years. A credit allowed under this section shall not be transferable. A taxpayer shall be eligible for the credit established by this section if the taxpayer demonstrates to the division that it has purchased sustainable aviation fuel for an aircraft departing from an airport in the commonwealth. The division may recapture tax credits authorized to a taxpayer if after an investigation by the division, in consultation with the department of revenue, the division determines that the taxpayer is in material noncompliance with this section. The division shall notify the department of revenue of any such determination.
(2)
The total cumulative value of the tax credits authorized pursuant to this section and subsection (kk) of chapter 62 shall not exceed $10,000,000 for any taxable year. Any portion of the cap established in the preceding sentence that is not authorized by the division during a fiscal year shall be added to the amount the division may authorize in subsequent years.
(d)
The division, in consultation with the commissioner of revenue, shall promulgate regulations and forms necessary to implement this section.
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| Last updated: | June 12, 2026 |
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