Lawmakers would triple lifespan of 45Z clean fuel credit
The 45Z tax credit, intended to encourage the development of sustainable aviation fuel and other low-carbon fuels, would be available until 2034 and limited to domestic feedstocks under companion bills filed in the House and Senate on Tuesday. Farm groups said the legislation would allow time for domestic production to rise while discouraging a flood of imported oil, grease, and tallow.
Limiting 45Z credits to U.S. feedstocks has risks, says Vilsack
U.S. food and ag exports might suffer if the government denies 45Z tax credits to foreign feedstocks used in making sustainable aviation fuel, said Agriculture Secretary Tom Vilsack on Tuesday. The Biden administration intends to issue regulations for the tax credits, worth up to $1.75 a gallon, before leaving office in January, Vilsack told a biofuels group. "I'm confident that we're going to get her done."
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.
Less corn land is needed than soy to satisfy SAF goal
Soybean plantings would have to increase nearly 50 percent if soybean oil became the only feedstock for sustainable aviation fuel (SAF), said two analysts from UC-Davis. With its higher yields per acre, corn ethanol as the sole feedstock would result in an increase in area of around 9 percent.
Ethanol for aviation will get tax credits, Vilsack assures industry
Ethanol will be included when the Biden administration spells out eligibility for lucrative tax credits for sustainable aviation fuel (SAF), and the incentives will reflect the impact of climate-smart farming practices, Agriculture Secretary Tom Vilsack told ethanol makers on Tuesday. "We're working very hard to make that happen, and I'm confident that it will happen."