Administration Won’t Finalize 45Z Guidance

Biden administration officials won’t finalize guidelines on new clean fuel production tax credits intended for the airline and biofuel industries before the officials leave office in January.  Three sources told Reuters that casts significant doubt on the future of a key piece of the president’s climate goals.  The tax credit was due to take effect on January 1, 2025, but a lack of detailed guidance from the Treasury Department would make the program dormant.

The credit initially was supposed to help drive the production of three billion gallons of sustainable aviation fuels by 2030. Air travel contributes 2.5% of global greenhouse gas emissions, which makes it a big part of U.S. climate policy.

The Treasury Department said it will still issue the needed guidance before January 20 that will enable producers to access that credit during the new year. Biofuel companies wanted a finalized program in place by that date.

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