Growth Energy Applauds IRS Guidance and DOE GREET Model Update to Maximize Value of 45Z Clean Fuel Production Credit
WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, commended the Internal Revenue Service (IRS) for the guidance it released today in conjunction with the related 45Z CF GREET Model update that clears a path for farmers and biofuel producers to further enhance the value of the 45Z Clean Fuel Production Tax Credit.
Specifically, the guidance stipulates that qualifying low-carbon agricultural practices consistent with the technical guidelines released earlier this year by the U.S. Department of Agriculture (USDA) can be used in the calculation of the 45Z credit. The guidance also provides transition rules for applying changes made to 45Z by the One Big Beautiful Bill Act (OBBBA), including a requirement that emissions rates exclude emissions attributable to flawed, outdated, and inaccurate indirect land use change (ILUC) calculations.
“Farmers and biofuel producers asked and the Trump administration has delivered,” said Growth Energy CEO Emily Skor. “The 45Z tax credit is already driving significant investments in rural communities across the U.S., but this guidance is the key to ensuring farmers reap the benefits of the credit.
“We thank USDA, DOE, and the Treasury Department for decisively tying qualifying farm practices to 45Z and providing important clarification on ILUC. We can’t wait to see how this new guidance accelerates the credit’s impact across rural America,” she added.
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