Long-awaited updates to the Clean Fuel Production Tax Credit, known as 45Z, have been announced by the Department of Energy. These changes could benefit farmers and ranchers in the future. Brian Glenn, director of government affairs for the American Farm Bureau Federation, says the changes allow for calculations of tax incentives using the GREET model.
The emission rate becomes a carbon intensity score, and the lower the score, the higher the tax credit. Congress authorized the change to the GREET model through the One Big Beautiful Bill Act last year.
This credit can help support stronger demand for U.S.-grown feedstocks, which would be a big help to farmers in the future.
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