Build Back Better Bill Would Lavish New Corporate Subsidies on Biofuel Industry

It would alter the tax code to provide new subsidies to a biofuel industry that's already received $12 billion in government support since 2016.

The bill would create a new "Sustainable aviation fuel tax credit" program, which would provide a minimum $1.25 credit to fuel blenders for every gallon of biofuel they include in their fuel mixes intended for use in aviation.

The program is closely modeled on the federal government's existing biodiesel tax credit program, which provides fuel blenders with a $1 tax credit for every gallon of biodiesel they include in their fuel mixtures.

The credit in the House's Build Back Better bill is estimated to cost $600 million, says Sheila Karpf with Taxpayers for Common Sense.

Biofuels made from palm oil-which produce less greenhouse gas when used but also require leveling rainforests to make-aren't eligible for the tax credit in the House's Build Back Better bill.

Prior to Biden's endorsement of subsidies for sustainable aviation fuel, airlines themselves were split on using more biofuels.

If more biofuel use increases airlines' operating costs, and thus ticket prices, that could have a negative impact on carbon emissions and the environment, even if the fuel itself lets off less greenhouse gas.
 

https://reason.com/2021/09/20/build-back-better-bill-would-lavish-new-corporate-subsidies-on-biofuel-industry/