Farm Progress America, Nov. 19, 2024

MIke Pearson takes a look at a how a delay in the renewable fuels tax credit could hurt producers and others involved and what can be done about it.

The renewable fuels industry is at a critical point. Many are preparing for the 45Z tax credit set to take effect Jan. 1. It's a clean fuel tax credit.

However that date is just six weeks away and the U.S. Treasury Department hasn't even released a proposal for the tax credit yet.

Many in the industry are concerned about the lack of clarity for tax credit and are urging Congress to extend the current biodiesel and renewable fuels credit blenders credit for one additional year.

This sentiment was echoed in a letter to congress last week.

The criteria necessary to determine the amount the credit will provide is making it difficult for the first quarter decisions in 2025.

Producers haven't event received the registration packet needed in order to claim the tax credit. Others are saying the information for the tax credit needed to be released months ago.

Many producers are urging the continuation of the exiting tax credit to enable producers and others involved to plan for next year.

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 .

Related: Our most recent edition