45Z clean fuel production credit

September 3, 2024

The Inflation Reduction Act created two novel, federal carbon-intensity-based tax credits for biofuels. 40B Sustainable Aviation Fuel Tax Credit which is currently in place and will sunset at the end of 2024, and 45Z Clean Fuel Production Tax Credit, which will begin January 2025.

How do these tax credits impact farmers? District 6 Farmer Leader Dave Walton says farmers have the chance to claim credits but there are some things they need to know. The 45Z tax credit provides financial incentives for climate smart practices, but only when cover crops and no-till are used together. Walton shares how the Iowa Soybean Association and American Soybean Association will remain focused on diversifying practice requirements, bringing incentives through the value chain to the farmer and emphasizing the importance of a domestic feedstock preference. 

Seeds of Success is produced by Brownfield as part of a content partnership with the Iowa Soybean Association.

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