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Work continues on clean fuel production tax credit

The Under Secretary of Farm Production and Conservation at the USDA says the agency continues to work closely with the Department of Treasury on the 45Z clean fuel production tax credit.

Robert Bonnie tells Brownfield improvements to the credit can make biofuels more attractive for the new Sustainable Aviation Fuel market.

“As we look at 45Z, can we open it up to more crops, be more flexible based on types of practices and not having to bundle practices?”

Bonnie says USDA is also looking at ways to better track carbon intensity scores throughout the supply chain.

“We’re looking at ways we might put together a rule to help track those commodities through the supply chain and do it in a way that will increase public confidence and create an easy system for folks in agriculture to pursue.”

The 45Z clean fuel production tax credit is expected to take effect in January. The credit would apply to transportation fuel produced after that time and sold before the end of 2027.

Bonnie was a speaker at the Ag Outlook Forum in Kansas City this week.