Yesterday marked a moment that farmers and the biofuels industry eagerly anticipated for over a year. The USDA released guidance on 45z tax credits for climate-smart Ag, feedstocks, and biofuels. Many ag industry leaders and entities have praised Secretary Vilsack for bringing some clarity to farmers on this topic.
Chris Bliley is VP of Regulatory Affairs for Growth Energy, and he talks about yesterday’s announcement.
Starting with what this means for the biofuels industry, Bliley discusses how this opens the doors to more benefits for carbon sequestration practices at plants and brings more value to feedstocks like DDGs and soybean meal.
You may be asking what that means for the average farmer. Well, it means that there is going to be tax credit value for the conservation practices you are using on your farm. The downside of all this though is that the Treasury Department will need to act on this proposal. But in four days, we will have a whole new Treasury Department under a new administration. So, this will still take a little time to get solid monetary values assigned to these practices.
So, the Ag industry seems to be pleased with this USDA announcement. However, last week, the stakeholders were not pleased with the Treasury Department’s announcement. Bliley gives us more insight into the differences between the two announcements.
Bliley encourages farmers to keep an eye on the progress of this and be ready to talk to their tax advisors the moment these rules become finalized. That way you will be able to maximize the benefits of your work.
