Biden administration to release short-term guidance on clean fuel tax credit, sources say By Reuters

Written by Jarrett Renshaw

(Reuters) – President Joe Biden’s administration expects to release interim guidance on the clean fuel tax credit on Friday and leave final decisions to the incoming administration of President-elect Donald Trump, according to two sources familiar with the process.

With this news, biofuel companies and their legislative supporters will have to wait to see if Trump will back the plan on the much-anticipated guidelines for a clean fuel production tax aimed at the airline and biofuel industries.

Trump has vowed to scrap Biden’s 2022 Inflationary Cuts Act, which launched the plan, to pay for an extension of his tax cuts.

The Biden administration believes companies can rely on the interim guidance if or when a final rule is proposed and finalized by the Trump administration.

That introduces uncertainty into the system and forces companies to engage in a new round of lobbying.

The US Treasury did not immediately respond to requests for comment.

Reuters exclusively reported in early December that the administration would not finalize the guidelines before Biden leaves office in January.

The tax credit, the engine behind Biden’s flagship plan to produce 3 billion gallons in sustainable jet fuel production by 2030, was supposed to take effect on Jan. 1. But the lack of detailed guidance from the US Treasury will make this plan ineffective. Air travel contributes about 2.5% of the world’s greenhouse gas emissions, making it a major target in the fight against climate change.

It was not clear whether the snowy weather in Washington and the funeral of former President Jimmy Carter this week would delay the release date.