Guidelines around a new tax credit for sustainable aviation fuel is issued by Treasury Department
ABC News
The Treasury Department is spelling out the rules for tax credits designed to stimulate production of sustainable aviation fuel
Long-awaited guidance around tax credits for aviation fuel that reduces emissions of greenhouse gases compared with conventional fuel was issued Friday by the Treasury Department.
Environmentalists said they were concerned that the guidelines could pave the way for credits for fuel made from corn, sugar cane and other crops, which they consider unsustainable sources.
Producers of sustainable aviation fuel will be eligible for tax credits ranging from $1.25 to $1.75 per gallon.
Congress approved the credits as part of President Joe Biden’s Inflation Reduction Act of 2022, which included provisions designed to boost cleaner energy. The credits are designed to increase the supply and reduce the cost of sustainable fuel, which is far higher than regular jet fuel.
On a key issue, the Treasury Department accepted a model for measuring the emissions-reduction of fuels that is being developed by the Energy Department and is supported by the ethanol industry.
