September 13, 2024
Mike Pearson takes a look at the 2025 Clean Fuel Production Tax which goes into effect in January.
The 2025 Clean Fuel Production Tax or 45 Z is designed to boost biofuel production by offering tax credits for fuels made by feed stocks.
There are a lot of questions about how the rules regarding the tax will impact farmers, biofuel producers and the environment.
The intended consequences is to boost soybean and ethanol production to reduce carbon emissions.
This could expand the markets for these crops.
The priority for farmers and biofuel producers is supposed to be domestic biofuel stocks.
However, clear guidance is needed so that domestic biofuel stocks are used and not foreign feed stocks. The major concern is over used cooking oil being imported from China which has been flooding the U.S. market.
The tax credit is crucial for U.S. farmers and jobs in production.
Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.
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