Corn Growers Thank Trump Administration for Crucial Next Steps in 45Z Implementation

The Internal Revenue Service this week released its guidance for farmers looking for clarity on the future of the 45Z Clean Fuel Production Tax Credit, which is designed to help the biofuels industry transition into the aviation sector.

The guidance, in conjunction with Tuesday's updated Department of Energy GREET Model, will give safe harbor to previously recognized "on farm" practices in reducing the carbon intensity of qualifying fuels. In response to this development, Ohio corn grower and National Corn Growers Association (NCGA) President Jed Bower released the following statement:

"We are very pleased to see these agencies reaffirm the positive actions from the administration earlier this year, which recognized the importance of existing regenerative practices. We have been encouraged by the strong cooperation and emphasis on how this tax credit will benefit the individual farmer throughout the implementation process."

"This guidance also codifies positive changes to the credit regarding indirect land use change. We look forward to working with the Treasury Department this fall as it looks to issue a final rule by November. NCGA would also like to see 'book and claim' acknowledged as a viable chain of custody methodology in the final rule."

Book and claim allows farmers to sell the environmental value of their low-carbon corn directly to biofuel producers digitally, eliminating the need to physically segregate and transport those crops to a specific facility.