US Treasury Department issues guidelines around a new tax credit for sustainable aviation fuel

A Delta Air Lines plane takes off from Hartsfield-Jackson Atlanta International Airport, Nov. 22, 2022, in Atlanta. (Brynn Anderson, File/AP Photo)

The Biden administration released long-awaited guidance on Friday around tax credits for aviation fuel that reduce emissions of greenhouse gases compared with fuel made from crude oil.

Some environmentalists expressed concern that the Treasury Department guidelines could allow credits for fuel made from corn and other crops that they consider poor choices because of the water and other resources needed to grow them.

Midwest lawmakers and companies that produce corn-based ethanol praised the guidelines, although their enthusiasm could be short-lived.