Ag groups demand fix to jet fuel credit

Source: By Agri-Pulse • Posted: Tuesday, September 14, 2021

Farm and biofuel industry groups are appealing to Democrats to rework a proposed new tax incentive for renewable jet fuel to make sure vegetable oils and corn ethanol would qualify as feedstocks. The tax credit for sustainable aviation fuel, or SAF, would vary from $1.25 to $1.75. But the industry groups say domestic ag commodities would largely be ineligible because of a requirement that the carbon impact be measured according to a methodology adopted by the International Civil Aviation Organization. “Because biomass feedstocks are essential SAF sources, it is imperative that tax credits and other programs properly account for the lifecycle emissions of these sources and the petroleum products these new fuels will replace,” the groups say in a letter to congressional leaders.