The Biden administration will release short-term guidance on clean fuel tax credits, sources told Reuters
Author: Jarrett Renshaw
(Reuters) – President Joe Biden’s administration expects to release short-term guidance on clean fuel tax credits on Friday and leave final decisions to the incoming administration of President-elect Donald Trump, according to two sources familiar with the plan.
With this news, biofuel companies and their legislative backers will have to wait to see if Trump backs the plan on long-awaited guidance on new clean fuel production tax credits for the airline and biofuel industry.
Trump has promised to repeal Biden’s Inflation Relief Act of 2022, which launched the program, to pay for an extension of his tax cuts.
The Biden administration believes companies can rely on the interim guidance if or when the Trump administration proposes and finalizes a final rule.
This brings uncertainty to the program and forces companies to engage in a new round of lobbying.
The US Treasury Department did not immediately respond to requests for comment.
Reuters exclusively reported in early December that the administration would not finalize the guidelines before Biden leaves office in January.
The tax credit, the driving force behind Biden’s ambitious plan to generate 3 billion gallons of sustainable jet fuel by 2030, was set to take effect on Jan. 1. But the lack of detailed guidance from the US Treasury Department would cause the program to not work. Air travel contributes about 2.5% of global greenhouse gas emissions, making it a major target in the fight against climate change.
It was not clear whether snowy weather in Washington and former President Jimmy Carter’s funeral this week would delay the announcement time.
