Biden calls for higher tax credit for SAF, spending for biofuels ‘support’

Source: By OPIS • Posted: Wednesday, June 2, 2021

The Biden administration in its budget proposal for fiscal year 2022 wants to give sustainable aviation fuel (SAF) producers a $1.50 to $1.75/gal tax credit, while providing $1 billion in federal funds to “support” biofuels. Biden’s budget also includes $1 billion in “support for biofuels” between 2022 and 2024. While the administration provided no details on how the money would be spent, it said the funding would be divided between $500 million in 2022 and $250 million each for 2023 and 2024. Geoff Cooper, president and CEO of the Renewable Fuels Association (RFA), said the group was pleased to see the inclusion of the general funding in the budget, and “looks forward to learning more about the intended use of this proposed funding.” In addition, the budget would provide $14.5 billion from 2022 through to 2026 for increased biorefinery, renewable chemical and bio-based product manufacturing.