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Ethanol supporter hopes debt ceiling bill restores tax incentives

New legislation that would raise the U.S. debt ceiling includes language ethanol supporters would like removed.  Economist Scott Richman from the Renewable Fuels Association tells Brownfield the bill as-written repeals several biofuel tax credits that are important for meeting climate goals. “What this is going to do is provide a way for biofuel producers to monetize that reduction in carbon to push toward net zero.”

Richman says the $1.25 Sustainable Aviation Fuels Tax Credit and the Clean Fuels Production Credit scheduled for 2025 are part of the Inflation Reduction Act.  He says these credits will be vital for the developing sustainable aviation fuel sector. “That’s not something that’s available right now. The industry has to be built. There’s a tremendous amount of capital expenditures that have to happen to put the infrastructure in place to do that.”

Richman says for both decarbonization and extending fuel supplies, he hopes lawmakers reconsider the tax credits and some of the important pieces of the Inflation Reduction Act.

USDA says ethanol production currently accounts for 45% of U.S. corn use.

Speaker Kevin McCarthy introduced the Limit, Save, and Grow Act last week, which would raise the debt limit but also reign in federal spending.