By Jarrett Renshaw
(Reuters) – President Joe Biden’s administration expects to release short-term guidance on clean fuel tax credits on Friday and leave final decisions to President-elect Donald Trump’s incoming administration, according to two sources familiar with the plan.
With the news, biofuel companies and their legislative backers will have to wait to see if Trump will back the plan on the highly anticipated guidelines on new clean fuel production tax credits aimed at the airline and biofuel industries.
Trump has vowed to repeal Biden’s 2022 Inflation Reduction Act, which launched the program, to pay for the 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 completed by the Trump administration.
That casts uncertainty in a program and forces companies to engage in a new round of lobbying.
U.S. 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 ambitious plan to generate 3 billion gallons in production of sustainable aviation fuels by 2030, was due to become effective Jan. 1. But a lack of detailed guidance from the U.S. Treasury would render the program dormant. Air travel contributes around 2.5% of global greenhouse gas emissions, making it a big target in the fight against climate change.
It was unclear whether snowy weather in Washington and the funeral of former President Jimmy Carter this week would delay the timing of the release.
This post is originally published on INVESTING.
