Airport Technology 

US fuel retailers have voiced their concerns against the government’s inclusion of a tax credit for sustainable aviation fuel (SAF) in the spending bill, Reuters reported.

According to retailers, SAF is less efficient in comparison to renewable diesel and is more carbon intense.

Under the new bill, the government plans to include a tax credit ranging from $1.25 to $1.75 per gallon of SAF, depending on the feedstock used in the production of SAF.

Retailers are concerned that the tax credit would shift vegetable oil and other renewable feedstocks to aviation, thereby impacting the supply for fuel producers who are involved in the production of renewable diesel.

The tax and climate bill aims at reducing the country’s carbon emissions by 40% by the end of this decade and cutting the budget deficit by $300bn.

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