By Jamie Martin
The administration has not finalized guidance for the 45Z Clean Fuel Production tax credit, leaving biofuels producers, particularly those in renewable diesel and biodiesel, uncertain about their next steps. The 45Z credit, crucial for transitioning from the expiring blender’s tax credit, remains in limbo.
According to unnamed sources, guidelines for the credit will not be completed before January 20, 2025, leaving producers without clear direction.
The delay has already caused significant disruption, with some biodiesel producers reducing operations or shutting down plants entirely.
Paul Winters, director of public affairs at the Clean Fuels Alliance America, stated, “We spent the entire year urging Treasury to issue guidance by September because the biodiesel and renewable diesel industry is trying to navigate the change from the blender excise tax credit to the producer income tax credit.” He emphasized that the delays are impacting producers who cannot claim the credit until their registration is completed.
Industry leaders like Geoff Cooper, president of the Renewable Fuels Association, remain hopeful for interim guidance. Cooper stated, “While we agree that final regulations for 45Z seem highly unlikely before Jan. 20, we remain hopeful that the administration will at least issue some sort of guidance or safe harbor before Jan. 1.”
Farmers and biofuels producers, who have already invested in technologies to lower carbon intensity, face economic risks if the credit remains unfinished.
Growth Energy CEO Emily Skor highlighted the implications, stating, “To leave the credit unfinished would jeopardize the economic benefits this credit could deliver to America’s rural communities.”
With rural economies and the biofuels industry on edge, stakeholders continue urging the administration for timely guidance.
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Categories: National