Aviation fuel credit payments generally do not earn interest

Plain-English summary

Chief Counsel advised that sustainable aviation fuel credit payments are generally excluded from interest under the provisions cited in the email. An exception applies when a claim covers a period of at least one week and at least $200 is payable. If both conditions are met, interest is payable when the government does not make the payment within 45 days. Otherwise, the payment is interest-free.

Ruling snapshot

• Question: When does a sustainable aviation fuel credit payment earn interest?
• Outcome: Advice given, generally no interest unless the statutory amount, period, and delay conditions are met
• Key authorities: IRC §§ 6247(e)(1), 6247(k), and 6427(i)(3)(B), as cited in the document

Full text (IRS public release)

 ID:          CCA_2022110710063150                         [Third Party Communication:

 UILC:        6206.00-00                                   Date of Communication: Month DD, YYYY]

Number: 202346014
Release Date: 11/17/2023
From: -----------------------
Sent: Monday, November 7, 2022 10:06:31 AM
To: -------------------
Cc: --------------------
Bcc:
Subject: RE: IRA Section 132o3 - Sustainable Aviation Fuel Credt


Hi ---------,

Under §6247(e)(1), the sustainable aviation fuel credit (§6247(k)) payment is excluded
from interest as a general rule. §6427(i)(3)(B) provides an exception when two criteria
are met. A claim for any period 1) for which $200 or more is payable under such
subsection (e)(1); and 2) which is not less than 1 week. When those criteria are met,
§6427(i)(3)(B) applies and interest will be paid if the government does not make the
payment within 45 days. But generally, payments under §6247(e)(1) are interest free.

Best,
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