Iowa Senator Chuck Grassley says the next version of the Sustainable Aviation Fuel tax credit needs commonsense, lacking in this year’s credit that’s due to run out in December. Grassley says the 45Z tax credit due by the first of next year must avoid the pitfalls of the expiring 40B credit for biofuel-based sustainable aviation fuel, which is a potentially huge market for biofuels.
“This silly thing that we’re going to subsidize imports of palm oil to a greater extent than we help encourage soybeans to be used in sustainable aviation fuel is nonsense,” according to Grassley. The Iowa Senator has been outspoken against used cooking oil imports from China qualifying for SAF tax credits saying “We need fairness between imports and soybeans.”
Grassley credits USDA Secretary Tom Vilsack for his interagency efforts to get fairness despite limited success. Grassley said, “I think he made a good faith effort to get some of these other agencies that were involved in the 40B requirements, and in the end, I don’t think he was successful. I applaud him for continuing to bring some commonsense to it.”
Grassley hopes Congress puts an end to any SAF tax credit favoring imported feedstocks over domestic ones, an imbalance he argues will be a disaster for U.S. grain production.
Story by Matt Kaye/Berns Bureau; courtesy of NAFB News Service