Restrict clean fuel credits to U.S. feedstocks, farm groups say
Lucrative tax credits of up to $1.25 a gallon should be available only for low-carbon fuels made from U.S.-grown feedstocks, four farm groups told the Biden administration on Wednesday. In a letter, the groups also said the government should broaden its list of climate-smart farming practices that produce lower-carbon “sustainable” crops.
Farm practices will open the door to SAF tax credits, for some
Sustainable aviation fuels will qualify automatically for tax credits of up to $1.25 a gallon if they are derived from corn and soybeans grown under a specific set of carbon-reducing practices, said the Biden administration on Tuesday. Farm groups and biofuel producers grumbled at the restrictions — a fraction of U.S. biofuels would be eligible at present — and said they would seek better terms in the long-term regulations now under consideration.