The Treasury Department unveiled its guidelines for the “Sustainable Aviation Fuels” tax credit, which bolsters non-fossil fuels such as biofuels that are used to power planes.

Under the tax credit, fuels that reduce greenhouse gas emissions by at least 50 percent are eligible for a credit of $1.25 per gallon.

That 50 percent reduction will be calculated using a federal model known as the GREET model, which the ethanol industry has expressed support for over other models. 

The ethanol industry has raised concerns about other models, saying, for example, that under a European model fewer fuels would qualify.  

Agriculture Secretary Tom Vilsack said the decision to use this model “would provide a pathway for corn-based ethanol, soy-based diesels … [and] bio-based fuels to be able to qualify for significant tax credits.” 

Welcome to The Hill’s Energy & Environment newsletter, we’re Rachel Frazin and Zack Budryk — keeping you up to speed on the policies impacting everything from oil and gas to new supply chains.