Biofuel groups welcome signage of the Inflation Adjustment Act this week. The sweeping legislation includes key priorities for the biofuels industry.
The legislation signed by the president earlier this week includes an extension for tax credits for carbon oxide sequestration and utilization, the Clean Fuel Production Credit starting in 2025 and expiring at the end of 2027 to produce low-carbon fuels, and five tears of sustainable aviation fuel credits.
Additionally, the legislation includes $500 million for biofuels infrastructure through the end of 2031, an extension of the Biomass-Based Diesel Blenders Credit, and a $300 million grant program to increase domestic production and deployment of sustainable aviation fuel. Renewable Fuels Association President and CEO Geoff Cooper says, "This bill puts ethanol on a sustainable path for growth and investment.” Growth Energy CEO Emily Skor adds, “Biofuels are critical to meeting climate goals, and this law will help maximize our industry's contributions to a cleaner future. “