WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, submitted comments to the U.S. Treasury and Internal Revenue Service (IRS) outlining recommendations for the implementation of the Section 45Z clean fuel production tax credit, as enhanced and extended by the One Big Beautiful Bill (OBBB).
“Treasury has done an outstanding job of collecting feedback from all relevant stakeholders, and we applaud their commitment to implementing 45Z in a way that ultimately maximizes the credit’s economic benefits,” said Growth Energy CEO Emily Skor. “With the right guidance, including flexible guidelines for farmers seeking to adopt innovative practices, 45Z can accelerate U.S. energy leadership and unlock billions of dollars in new investments across rural America. We look forward to Treasury’s final ruling that will give farmers and biofuel producers the certainty they need to expand access to more affordable fuel options.”
Among other recommendations, Growth Energy urged regulators to include on-farm practices in the credit calculation, follow the law to exclude indirect land use change (iLUC) from the credit calculation, and quickly finalize their final 45Z rule. These actions would provide near-term certainty for farmers, clarify how the 45Z-CF GREET model will be used to determine credit eligibility, and open pathways for a wider variety of crop-based feedstocks. Growth Energy also called on Treasury to eliminate administrative complications that could stall investment.
“Our members are critical to the supply of biofuel in the United States and have substantial interests in the sound implementation of the 45Z credit,” wrote Growth Energy. “Our industry is eager to advance the administration’s energy goals by providing low-cost, innovative, and American-made fuel as we remain committed to helping our country diversify its energy portfolio and provide consumers with better and more affordable choices at the fuel pump.”
Read the full comments on the 45Z rule here.