Farm Progress America, Jan. 14, 2025

Mike Pearson takes a look at the 45z tax credit rule released last week.

The 45z Tax credit was created to incentivize low carbon renewable fuels but the primary rule released last week has left many frustrated.

Some in the renewable fuels community say the rule fails to provide clarity and support necessary to drive more investments in the renewable fuel industry.

Renewable Fuels Association expressed disappointment in the rule and said it lacks support from biofuel community and introduces complexity which stops some from capitalizing on the credit.

Others say the new rule overlooks feedback given from the community.

The tax credit will fail to provide incentives to biofuel producers and the rule needs simplified in order for the renewable fuel community to cash in on the tax credit.

Growth Energy also weighed in and said feedstock is a missed opportunity which would have been a good thing for American agriculture.

The rule fails to detail the lifecycle of emissions Some have called it inconsistent and unworkable.

To be in compliance with rule could make it burdensome for farmers to participate.

American Farm Bureau President Zippy Duval says farmers have had high hopes for new markets and feedstocks but the tax rule could stop that from happening.

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Many are calling on treasury department to repeal the rule and include clean emissions accounting, domestic feedstocks and streamline compliance to ensure it carries through on the promises made for the tax credit.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness .