Senators urge IRS to ensure SAF produced from petroleum products such as plastics exempt from tax credit
In Washington, Oregon’s U.S. Senator Jeff Merkley, along with U.S. Senators Edward J. Markey (D-MA), Elizabeth Warren (D-MA), Cory Booker (D-NJ), Sheldon Whitehouse (D-RI), and Bernie Sanders (I-VT), sent a letter to the U.S. Commissioner of the Internal Revenue Service (IRS), Daniel Werfel, urging the IRS to ensure that fuels derived from petroleum products will not qualify for the Sustainable Aviation Fuel (SAF) tax credit available through the Inflation Reduction Act (IRA).
The Senators point out that the plain language of the IRA is clear: petroleum products do not qualify for the SAF tax incentives, and because plastics are derived from petroleum products, plastic-based fuels should not qualify. In addition, they highlight the public health and environmental dangers if these lucrative tax credits are not implemented correctly.
Category: Policy
