Sen. Jeff Merkley, D-Ore., and 5 of his colleagues are urging the Inside Income Service to make sure that fuels constructed from petroleum merchandise, particularly plastic feedstocks, are unable to qualify for the Inflation Discount Act’s sustainable aviation gas (SAF) and clear fuels manufacturing tax credit.
Merkley and Sens. Edward Markey, D-Mass.; Elixabeth Warren, D-Mass.; Cory Booker, D-N.J.; and Sheldon Whitehouse, D-R.I. Oct. 27 despatched a letter to IRA Commissioner Danny Werfel explaining why the company ought to guarantee fuels constructed from plastic-based feedstocks won’t qualify for the 2 tax credit.
Throughout the letter, the senators describe the various emissions and human well being associated impacts of plastics business, together with services that absorb plastic-based waste and refine it into chemical compounds used to make gas, corresponding to SAF.
“The plain language of the IRA is evident that petroleum merchandise don’t qualify for the SAF tax incentives, and that ought to disqualify plastic-based fuels,” the senators wrote. “Each the Part 40B and Part 45Z credit embrace restrictions on the kind of aviation gas that’s eligible to qualify for the tax incentives, and state that the gas should not be ‘derived from … petroleum.’ These fuels constructed from plastic concentrated feedstocks are derived from petroleum, as a result of plastic is a petroleum product. Uncooked feedstocks mostly derived from fossil fuels are a fundamental constructing block within the plastics manufacturing course of. If plastic-derived waste is processed to create aviation gas, it’s nonetheless a petroleum-based product getting used to create the gas. Simply because the petroleum has gone by further layers of processing doesn’t change the truth that the top product is a petroleum-derived product.”
A full copy of the letter is offered on Merkley’s web site.
