Biofuel Producers Suggest Changes to SAF Tax Credit Plan

October 8, 2021 — The Biden administration has added a proposal to boost sustainable aviation fuel (SAF) production into their spending plan. The proposal has a tax credit of up to $2 a gallon for sellers and users of SAF. This credit is supposed to offset the high cost of sustainably produced fuels. The proposal deals with how carbon-saving benefits of fuel production are measured, and biofuel makers believe the plan’s model exaggerates the impact of farm grown biofuel feedstocks. Using that model would mean farmers who produce feedstocks for fuel production would not be able to access the tax credit. The biofuel makers are advocating for the model used to be changed so producers of feedstocks such as ethanol and soybean oil can be allowed to participate. The White House is expected to make the final decision on the matter.

More information on the tax credit and suggested changes can be found here.

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