Source: National Corn Growers news release
The Department of Treasury released more details today about a tax credit, known as 45Z, that is designed to help the biofuel industry make inroads into the aviation sector.
While today’s news included more information, corn grower leaders said they still need better clarity about the specific environmental practices that will be required for accessing the credit.
“What a missed opportunity for growers,” said Illinois farmer and NCGA President Kenneth Hartman Jr. “We have spent the last year providing Treasury officials with fact-based information in hopes of helping them develop clear and realistic guidelines for qualifying for the tax credit. It’s frustrating that our feedback fell on deaf ears.”
The burden to preserve this credit and to make it useful now shifts to the new administration, Hartman noted.
The 45Z tax credit was part of the Inflation Reduction Act, which was signed into law in 2022. The law provides tax incentives to refineries that produce biofuels that can be used in commercial aircraft to lower greenhouse gas emissions.
In May of last year, the U.S. Department of Treasury released its guidance on eligibility for the credits. Those guidelines troubled growers because it required them to implement environmental practices that are impractical in certain climates.
Corn grower leaders have since provided data-driven information to Treasury officials as they revised the guidelines.
Read the Notice of Intent to Propose Regulations on the section 45Z Credit and a notice providing the annual emissions rate table for section 45Z.
