Clean fuel tax credit guidance will not be finalized before Trump takeover – Reuters

Green Plains (GPRE) -6.3%, Darling Ingredients (NYSE:DAR) -5.7% and Clean Energy Fuels (NASDAQ:CLNE) -4.6% on Tuesday following a Reuters report that the Biden administration will not finalize expected guidelines on new clean fuel production tax credits aimed at the airline and biofuel industries before it departs in January.

Shares of other alternative energy companies also suffered, including Plug Power (PLUG) -12.1%, FuelCell Energy (FCEL) -7%, Ballard Power (BLDP) -3.9%, REX American Resources (REX) -3.4%, Bloom Energy (BE) -2.8%.

The tax credit, a key part of President Biden’s plan to generate 3B gallons in production of sustainable aviation fuels by 2030, was due to become effective January 1, but the administration reportedly continues to lack detailed guidance from the Treasury Department that would help make the program active.

Biofuel companies were hoping to have a finalized program in place before Biden departs on January 20, believing a complete program would provide some protection against President-elect Trump’s pledge to repeal the Inflation Reduction Act, which launched the program.

Industry executives will now attempt to win support from lawmakers to extend current tax credits set to expire this year, according to the report.