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Vilsack optimistic on 45Z guidance getting completed

The US Ag Secretary says work continues to develop guidance for sustainable aviation fuel tax credits.

Tom Vilsack says he’s optimistic the Department of Treasury can identify practices that result in guidance for the 45Z tax credit that works better for U.S. producers.

“I’m very hopeful that we are able to make the case for more crops to be included, and for more practices and more combinations of practices, but not necessarily only a single set of practices in combination, as is the case in 40B,” he says.

Some Senators want to ban foreign producers from qualifying for the 45Z tax credit, but he says there’s a better approach.

“I think the better way is for us to basically provide the level and support domestically that makes the choice from both an environmental and business position the easier choice, and that’s why we’re putting money behind the RCPP program,” he says.

Vilsack says not it could also be harmful to trade.

“Since 20 to 25 to 30% of what we grow and raise in this country has to be sold to somebody else, you have to be conscious of the impact and effect that that might have on all of those other opportunities,” he says.

As for the timeline, Vilsack says…

“I think everybody’s working towards that goal of end of the year, beginning of next year focus.”

Vilsack was the special keynote speaker at the American Coalition for Ethanol’s annual conference in Omaha, Nebraska.

Photo: U.S. Agriculture Secretary Tom Vilsack speaks with reporters.