A key part of President Biden's climate agenda may not survive his administration. A tax credit program designed to boost sustainable aviation fuel (SAF) production is delayed, and with Biden leaving office in January, its future is up in the air, Reuters revealed.
Without finalized rules, the program will miss its planned January 2025 start date, leaving the aviation industry without the incentives it needs to cut its pollution output.
Switching to green fuel is not simple, as air travel is responsible for about 2.5% of global pollution, according to the International Council on Clean Transportation. This tax credit is a critical step toward making SAF the go-to option for airlines.
What's happening?
The clean fuel tax credit, part of Biden's Inflation Reduction Act, was supposed to help airlines transition to SAF by rewarding producers of green fuels. According to Reuters, the Treasury Department announced that key details — like how the credit works and which production methods qualify — will not be finalized before Biden leaves office.
The biofuel industry, which had hoped SAF would open up new markets beyond stagnant ethanol demand, now faces uncertainty. Airlines are also waiting for financial support to make cleaner fuel a viable option.
The timing complicates matters further. Per Reuters, President-elect Donald Trump has vowed to repeal the Inflation Reduction Act, which established the tax credit in the first place. Senator Chuck Grassley criticized the program on the X platform, saying that it "ends when Republicans take power."
Why is the tax credit important?
Without this program, efforts to reduce aviation pollution could stall. SAF is one of the few realistic ways to lower pollution from flights, but it is expensive and difficult to produce at scale.
Rural communities that count on biofuel production are in a tough spot. Ethanol producers were counting on SAF to open up new opportunities and give local economies a boost. Now, they are left unsure if the program will move forward.
Environmentalists are concerned because SAF has the potential to reduce dirty air, but its production depends on converting farmland into fuel feedstocks, which can strain resources. Without finalized guidelines, these debates over sustainability and land use will remain unresolved.
🗣️ Should the government continue to give tax incentives for energy-efficient home upgrades?
🔘 Absolutely 💯
🔘 No 🙅
🔘 Depends on the upgrade 🤔
🔘 I don't know 🤷
🗳️ Click your choice to see results and speak your mind
What's being done about sustainable aviation?
The biofuel industry is pushing lawmakers to extend existing tax credits to keep SAF production alive in the short term. Some states, like California, are stepping in with their own policies. According to industry sources, California's Low Carbon Fuel Standard has already helped expand SAF use by rewarding producers for lowering pollution output.
Airlines like Delta and United are continuing to invest in SAF, keeping their focus on lowering pollution. At the same time, innovative companies in California are working on hydrogen-powered planes as a potential solution to aviation's pollution problem.
The fate of the tax credit and the clean fuel industry is uncertain for now. Even so, with so many industries and organizations committed to cutting pollution, the effort to make air travel greener isn't slowing down anytime soon.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
