U.S. Treasury releases new guidance on 45Z biofuel credit

The U.S. Department of the Treasury released new guidance surrounding the 45Z biofuel tax credit. The guidance addresses key aspects of biofuel production and outlines the eligibility criteria for claiming the credit, potentially benefiting farmers by further strengthening the market demand for soy-based biofuels. The guidance is designed to help the biofuel industry provide sustainable aviation fuel.

Most notably, the new guidance prohibits imported used cooking oil from being eligible for the credit, addressing a major concern brought forward by U.S. farm organizations. However, the guidance does not address potential sustainability practice requirements for crops like corn and soybeans.

“We are deeply appreciative of the Treasury’s efforts to establish a clearer framework for the 45Z biofuel credit and further protect U.S.-grown feedstocks,” said Rusty Goebel, president of the Ohio Soybean Association and Williams County farmer. “We ask that swift clarity is provided regarding any potential on-farm practices required for soy-based biofuels to qualify for the credit.”… Continue reading