US Treasury Department issues guidelines around a new tax credit for sustainable aviation fuel

By DAVID KOENIG
AP Airlines Writer

The Treasury Department is spelling out the rules for tax credits designed to stimulate production of sustainable aviation fuel. That’s fuel that creates fewer greenhouse gas emissions than conventional fuel made from fossil fuels. Environmentalists said Friday they are concerned that the guidelines could boost fuel made from corn and sugar cane. They would rather see fuel produced from cooking oil and fats. Producers of sustainable aviation fuel will be eligible for tax credits ranging from $1.25 to $1.75 per gallon. Congress approved the credits last year as part of President Joe Biden’s Inflation Reduction Act.