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Shining Light on Farm & Food Policy for 20 Years.
Tuesday, January 07, 2025
Biofuel groups are expressed increasing concern about the lack of guidance from the Treasury Department for a clean fuel tax credit that is set to take effect Jan. 1, saying investment has already slowed due to the uncertainty.
Federal agencies appear to be divided over which carbon intensity model should be used for an Inflation Reduction Act tax credit meant to grow the fledgling sustainable aviation fuel industry, according to biofuel policy experts.
Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D-W.Va., brought new hope to the renewable fuel industry last week by resurrecting scrapped measures from last year’s Build Back Better Act into a scaled-back version of the bill.
Congressional negotiators agreed to revive and extend through 2022 the expired $1-a-gallon tax credit that subsidizes biodiesel and renewable biodiesel production.
The National Biodiesel Board says in a letter signed by more than 70 other organizations and stakeholders that the very industry they represent is on the line if lawmakers are unable to pass an extension of a $1-per-gallon tax credit.
With one plant shutting down and others in danger of doing so, the biodiesel industry is sounding the alarm an expired tax credit has moved from a lobbying issue to an imminent threat to business.
