The inclusion of a tax credit for sustainable aviation fuel (SAF) in Democrats’ $430 billion spending bill is being resisted by American gasoline retailers who claim SAF is less effective and more carbon intensive than renewable diesel. However, as part of a tax and climate bill that aims to reduce U.S. carbon emissions by nearly 40% by 2030 and reduce the federal budget deficit by $300 billion, lawmakers are granting a $1.25-$1.75 per gallon SAF credit, depending on the feedstock used.
The bill aims at:
- Reducing carbon emissions
- Increasing the supply of vegetable oil on a worldwide scale
- Reduce emissions from aircraft while keeping up with fuel demand
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