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![]() Dec. 16, 2024 Source: Renewable Fuels Association news release Washington -- With certain modifications and proper implementation, the Clean Fuel Production Credit ("45Z") could create important new market opportunities for farmers, lower fuel prices for consumers, enhance energy security, and reduce emissions, the Renewable Fuels Association wrote today in response to a request for information from members of the House Committee on Ways and Means. "A successful tax credit program would result in greatly expanded production and use of U.S.-produced low-carbon biofuels; creation of new value-added markets for U.S. farm commodities; lower fuel prices for consumers; and reduced dependence on foreign energy sources," wrote RFA President and CEO Geoff Cooper. "Success can only be achieved if the tax credit program is durable, broadly scalable, and implemented in an efficient and straightforward manner for taxpayers." RFA called on the committee to consider extending the existing suite of biofuel tax credits--including the second-generation biofuel producer credit--while guidance is developed for 45Z and as potential modifications are debated in 2025. In addition, a more streamlined approach for registering for 45Z and securing IRS approval would help ensure biofuel producers are immediately ready when final rules are promulgated. RFA also called on the committee to ensure that any modifications to 45Z take a broad approach to climate-smart agriculture practices. "A wide array of CSA practices should be included to encourage the broadest participation possible by American farmers," Cooper wrote. "It is also essential that there are no 'bundling' provisions that require farmers to adopt multiple CSA practices simultaneously." Finally, RFA suggested changes in the 45Z program's treatment of sustainable aviation fuel "in order to truly stimulate investment in, and expansion of, SAF production." To sustain and promote new investment in SAF, the base value of the 45Z credit for aviation fuels must be enhanced to improve the economics of SAF production and send the right market signal to SAF financers. Tweet |
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