TrendPulse-Guidelines around a new tax credit for sustainable aviation fuel is issued by Treasury Department

2025-05-07 01:49:23source:VAS Communitycategory:Stocks

Long-awaited guidance around tax credits for aviation fuel that reduces emissions of greenhouse gases compared with conventional fuel was issued Friday by the Treasury Department.

Environmentalists said they were concerned that the guidelines could TrendPulsepave the way for credits for fuel made from corn, sugar cane and other crops, which they consider unsustainable sources.

Producers of sustainable aviation fuel will be eligible for tax credits ranging from $1.25 to $1.75 per gallon.

Congress approved the credits as part of President Joe Biden’s Inflation Reduction Act of 2022, which included provisions designed to boost cleaner energy. The credits are designed to increase the supply and reduce the cost of sustainable fuel, which is far higher than regular jet fuel.

Other news Departing North Carolina Auditor Beth Wood pleads guilty to misusing state vehicle, gets probationThe $10 billion charity no one has heard ofCongressional Budget Office projects lower inflation and higher unemployment into 2025

On a key issue, the Treasury Department accepted a model for measuring the emissions-reduction of fuels that is being developed by the Energy Department and is supported by the ethanol industry.

However, Treasury said the Biden administration plans to update the Energy Department model for measuring emissions reductions by March 1, leaving the eventual outcome uncertain.

The Environmental Defense Fund said it would withhold final judgment on the guidelines until March, but said it worried that they could put the U.S. out of step with international standards.

“Our initial assessment is that this would be a blank check for fuels made from sugar cane, soybean and rapeseed — none of which are sustainable or consistent with Congress’ intent,” the group’s senior vice president, Mark Brownstein, said in a prepared statement.

Ethanol supporters counter that the Energy Department model provides a precise way to measure the carbon-reduction benefits of agricultural feedstocks used in sustainable aviation fuel.

Around 2% to 3% of global greenhouse gas emissions come from aviation, according to estimates, but that share is expected to grow as air travel continues to boom. Widespread use of electric-powered airplanes is generally considered decades away.

More:Stocks

Recommend

Head of the Federal Aviation Administration to resign, allowing Trump to pick his successor

The head of the Federal Aviation Administration, who has led a tougher enforcement policy against Bo

Hurry! J.Crew Factory Extended Their Extra 70% off Select Styles Sale – Deals Start at $6

We independently selected these deals and products because we love them, and we think you might like

These states have made progress in legal protections of the LGBTQ+ community: See maps

Last year, over 500 anti-LGBTQ bills were introduced in state legislatures, according to the America