Trump Admin Clarifies 45Z Biofuel Tax Credit, But Farmers Seek More Support
The Trump administration has provided clarity on the 45Z biofuel production tax credit, which is a positive sign for farmers. The Energy Department and Internal Revenue Service have updated their guidelines to help producers of biofuel and the feedstocks used to make it.
According to the guidance, certain regenerative practices like no-till farming can be used when calculating the tax credit. This is based on the USDA's June guidelines, which stated that crops would be monitored using 'mass balance chain-of-custody', a physical tracking system from field to fuel tank.
The National Corn Growers Association and American Soybean Association have commended the DOE GREET update and IRS guidance. They also reiterated their calls for a 'book-and-claim' accounting system in the final 45Z rule, which would separate the physical product from its regenerative traits.