American Soybean Association welcomes 45Z updates supporting US farmers, biofuels
The American Soybean Association welcomed actions this week from the U.S. DOE and Internal Revenue Service that provide greater clarity and usability for the 45Z clean fuel production credit, an important tool for supporting domestic biofuel production and demand for U.S. soybeans.
DOE updated the 45ZCF-GREET model to incorporate carbon-intensity adjustments for certain regenerative-agricultural practices, including practices used in soybean production.
At the same time, IRS issued a notice that provides updated emissions-rate information and allows qualifying agricultural practices to be reflected in calculating the credit.
“ASA appreciates DOE, IRS, USDA and the administration for taking this important step to make the 45Z clean fuel production credit usable for biofuel producers,” said Dave Walton, ASA vice president and Iowa soybean farmer.
“These actions provide greater economic certainty for the biofuels industry, which is a critical source of domestic demand for U.S. soybeans,” he added.
As implementation moves forward, ASA will continue advocating for a flexible book-and-claim system that allows all farmers to participate in and receive value from the low-carbon attributes of their soybeans without requiring physical segregation throughout the supply chain.
“We look forward to continuing to work with the administration as policies are developed to strengthen the U.S. biofuels market and the soybean farmers who help supply it,” the association stated.
