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Biden admin outlines guidance on biofuel tax credit
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Biden admin outlines guidance on biofuel tax credit

Transportation industry groups pressed Congress Tuesday to quickly expand a key biofuel tax credit, following reports that the Biden administration would likely not finalize details of a new credit tax for clean energy before leaving office.

Groups representing trucking interests and fuel distributors said lawmakers should extend a $1 per gallon tax credit to biodiesel blenders, which they credit with helping the industry reduce emissions of carbon.

The biodiesel blender credit, first implemented twenty years ago, is set to be replaced by the new tax credit – a clean energy incentive provided in section 45Z of the tax code – which will come into force in January.

But the Biden administration has yet to issue guidance on how the tax credit will be implemented, including how to account for greenhouse gas impacts related to agricultural practices used to produce raw materials.