45Z Credit Takes Step Closer as USDA Releases Carbon Intensity Calculator for Illinois Corn
The U.S. Department of Agriculture has released its final Feedstock Carbon Intensity (FD-CI) Calculator, a tool that will help calculate field-level carbon intensity scores for corn in Illinois. This development moves the 45Z Clean Fuel Production Tax Credit closer to implementation. The credit is aimed at reducing the overall carbon intensity of ethanol and making it eligible for a higher tax credit.
Illinois corn farmers are advised to understand how their farming practices could impact the value of the credit. While the credit itself goes directly to ethanol producers, each plant will determine how any value generated through the credit is passed back to farmers. To take advantage of this opportunity, farmers should keep accurate records of their farming practices and inputs.
The FD-CI Calculator considers various factors including actual yield, nitrogen use efficiency, tillage practices, grazed cover crops, manure, soil testing, grain deliverability, and the major land resource area where the grain is produced. Farmers are encouraged to stay current on soil testing and consider practices that improve efficiency and soil health.