Biden Administration Releases Guidelines for Sustainable Aviation Fuels Tax Credit

The move is seen as a win for the ethanol industry, but raises sustainability concerns among environmentalists.

The Biden administration has released guidelines for the 'Sustainable Aviation Fuels' tax credit, which supports non-fossil fuels such as biofuels used in aviation.
The tax credit is eligible for fuels that reduce greenhouse gas emissions by at least 50%, calculated using the GREET model supported by the ethanol industry.
The decision is seen as a win for the ethanol industry, but has raised concerns among environmentalists about the sustainability of corn and other crop-based fuels.
The tax credit is part of President Joe Biden's Inflation Reduction Act of 2022, aimed at boosting cleaner energy and reducing the cost of sustainable fuel.
The Treasury Department plans to update the Energy Department model for measuring emissions reductions by March 1, leaving the eventual outcome uncertain.