Companies finally learned how they can collect clean fuel tax creditsafter the government released short-term guidance last Friday.
The missing piece: Still, the government didn’t clarify or finalize key details for the program.
Soundbite: “Biofuels groups are eager for clarity on the tax credits for fuels that combat climate change, which they hope will ultimately provide a pathway for corn-based ethanol to expand its market as a feedstock for sustainable aviation fuel.” — Reuters
Zoom out: The “45Z” credit went into place on January 1 and runs through the end of 2027. It made major changes to the “40B” credit issued in 2024 for sustainable aviation fuel. “40B” required farmers to enforce a “bundle of practices” to be eligible for the incentive.
This. Just. In.: With “45Z“, the bundling requirement has been dropped, the number of eligible crops increased, and more climate-smart farming practices will be included.
And farmers can now “do the math” with a nifty new calculator model the USDA released so farmers can “estimate their carbon intensity scores for their specific practices, crops, and location.”
Soundbite: “Farmers will find this easy to use and they will find it very helpful in helping them make decisions about how to best position their farm… for that matter individual fields within the farm, for utilization for biofuel feedstocks or SAF. — Ag Secretary Tom Vilsack
Speak now or forever hold your peace: The interim ruling has a 60-day public comment period.
ICYMI, Inauguration Day is this Monday, the 20th. Therefore it’ll be up to Trump’s administration to finalize guidance.