WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, welcomed new guidance that the Trump administration released today regarding updates to the 45Z clean fuel production tax credit. The updates to the 45ZCF-GREET User Manual make it easier for more biofuel producers to claim the credit and will ultimately drive investment in new energy projects that create jobs and support growth in rural communities.
“By lifting needless restrictions on wet mills and different end uses for captured carbon, the updated user manual ensures that more farmers and biofuel producers will have the freedom and flexibility to invest in U.S. energy dominance while supporting stronger markets for American agriculture,” said Growth Energy CEO Emily Skor. “In conjunction with an extension of the credit under consideration by lawmakers, this guidance will help restore market certainty and increase American competitiveness in the race for the next generation of liquid fuel solutions. We applaud Energy Secretary Wright for working with the U.S. Department of the Treasury to deliver a fairer, more accurate model for calculating incentives that will help drive American energy dominance and spur economic growth.”
Among other changes, the updates to 45Z:
- Eliminate prohibitions on wet mills being able to access the 45Z credit; and
- Allow carbon used in enhanced oil recovery to count towards lowering carbon intensity (CI) scores.