Transportation industry groups pressed Congress on Tuesday to quickly extend a key biofuel tax credit, following reports that the Biden administration probably won’t finalize the details of a new clean energy tax credit before leaving office.
Groups representing trucking interests and fuel marketers said lawmakers should extend a $1-per-gallon biodiesel blenders’ tax credit, which they credited with helping the industry reduce carbon emissions.
The biodiesel blenders’ credit, first implemented two decades ago, is set to be replaced by the new tax credit — a clean energy incentive in Section 45Z of the tax code — that takes effect in January.
But the Biden administration has yet to issue guidance on how the tax credit will be implemented, including how to account for greenhouse gas impacts from agricultural practices used to produce feedstocks.
