The Biden administration will not finalize guidelines for a clean fuel tax credit aimed at the airline and biofuel industries before President Joe Biden leaves office in January, casting doubt on the future of a key climate agenda. The tax credit, part of Biden’s plan to generate 3 billion gallons of sustainable aviation fuels by 2030, was due to take effect on January 1 but lacks detailed guidance from the U.S. Treasury.
The lack of guidance will render the program dormant, disappointing biofuel companies and lawmakers who were hoping for a finalized program in place before Biden departs. The industry is now pushing for an extension of existing blender tax credits to deal with the uncertainty.
The delay is due to policy debates between agriculture lobbyists and environmentalists over how to ensure the program can achieve its climate targets. A life cycle analysis that determines the value of the credit remains unfinished, according to sources.
The Treasury Department had previously committed to issuing guidance before January 20, but officials will not finalize it in time, citing ongoing policy debates. The White House did not respond to requests for comment on the delay.
Senator Chuck Grassley, a Republican, has vowed to take a different approach to Farm Belt politics if Republicans take over next year, criticizing Biden’s climate agenda as prioritizing “pet projects” for coastal elites at the expense of middle America.
Source: https://www.reuters.com/business/energy/biden-administration-will-not-finalize-clean-fuel-tax-credit-guidance-2024-12-03