US clean fuels tax credit likely by end of Biden administration, Agriculture Secretary says

By Leah Douglas

WASHINGTON (Reuters) - U.S. Agriculture Secretary Tom Vilsack said on Tuesday he is confident that a clean fuels tax credit program set to take effect in 2025 will be finalized by end of the Biden administration in January.

The program would provide credits for the production of lower-emission transportation fuels, including sustainable aviation fuel (SAF).

"I’m confident that we’re going to get ‘er done," Vilsack said at a summit in Washington, D.C., hosted by the biofuels trade group Growth Energy.

An April guidance for a SAF tax credit disappointed ethanol producers for requiring corn farmers to bundle a set of climate-friendly farming practices, meaning little to no ethanol would qualify.

The USDA is hoping to make more feedstocks and individual farming practices eligible for the credit and is in conversation with the energy and transportation departments about how to do so, Vilsack said.

"We are acutely aware of the calendar. To the level it can be, it's on a fast-track," Vilsack said.

The Treasury Department will ultimately issue the rule.

(Reporting by Leah Douglas, Editing by William Maclean)