By Jarrett Renshaw
(Reuters) – President Joe Biden’s administration hopes 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 sponsors will have to wait to see if Trump will endorse the plan on the long-awaited guidelines for new clean fuel production tax credits for the airline and biofuel industries.
Trump has promised to repeal Biden’s Inflation Reduction Act of 2022, which launched the program, to pay for extending his tax cuts.
The Biden administration believes companies can rely on the interim guidance if the Trump administration proposes and completes a final rule.
That creates uncertainty in a program and forces companies to participate in a new round of lobbying.
The US 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 driving force behind Biden’s ambitious plan to generate 3 billion gallons of sustainable aviation fuel production by 2030, was due to take effect on January 1. But a lack of detailed guidance from the U.S. Treasury would leave the program dormant. Air travel contributes to 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 former President Jimmy Carter’s funeral this week would delay the timing of the release.