Growth Energy Welcomes 45Z Progress
WASHINGTON, D.C. — Growth Energy, the nation’s largest biofuel trade association, today welcomed proposed rulemaking from the U.S. Treasury and U.S. Internal Revenue Service (IRS) on the Section 45Z clean fuel production tax credit. The credit was enhanced and extended by the One Big Beautiful Bill (OBBB) last summer, and Treasury’s proposed rule outlines eligibility requirements for farmers and biofuel producers seeking to expand production of American biofuels.
“American energy dominance runs through America’s heartland,” said Emily Skor, CEO of Growth Energy. “A strong, well-implemented 45Z credit can unleash lower-cost fuels, rebuild farm income, and open long-term market opportunities for American manufacturing. We applaud the Department of Treasury and the Trump administration for working to advance this rulemaking to chart a clear path for billions of dollars in new investments in U.S. energy leadership.
“The proposed rule provides much-needed clarity around key issues, including how credits will be calculated and who is eligible. We are encouraged that Treasury’s latest draft reflects Growth Energy’s comments regarding the need to offer greater freedom and flexibility to producers around ‘qualified sale’, production of undenatured ethanol for export, and implementation of provisions from the One, Big, Beautiful Bill (OBBB).
“However, some key questions still remain unresolved. Before the rule is finalized, we urge regulators to swiftly release an updated 45Z-CF GREET model that appropriately reflects the removal of indirect land use change and includes the use of farm practices to count toward carbon reduction goals.
“President Trump knows that American farmers and biofuel producers are ready to put more American-made fuel into the marketplace, hold down energy costs, and secure American energy leadership. Treasury’s proposal is an important step to help to make that vision a reality.”
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