The American Coalition for Ethanol (ACE) was holding its annual meeting in Omaha last year as Congress was passing the Inflation Reduction Act (IRA), and this year the ACE Conference in Minneapolis featured a panel of tax experts to discuss the opportunities in the legislation and the current unknowns making it challenging.

“Untangling and Maximizing IRA Biofuel Incentives” covered enhancements to Sections 45, 45Q, 45V, 48 and the new Section 45Z of the Internal Revenue Code, and shared insights on how to maximize on these incentives. MN Bio-Fuels Executive Director Brian Werner moderated the panel which featured:

Donna Funk, Principal-Partner, Pinion
2023 ACE IRA Panel, Donna Funk, Pinion 12:53
Mel Schwarz, Director of Legislative Affairs, Eide Bailly LLP
2023 ACE IRA Panel, Mel Schwarz, Eide Bailly 18:58
Bradley Pederson, Partner, Christianson PLLP
2023 ACE IRA Panel, Bradley Pederson, Christianson 20:19

“The Inflation Reduction Act is a monumental piece of legislation that has the ability to move the ethanol industry well into the future,” said Funk. “The 45Z tax credit is a huge opportunity every producer needs to understand how they can take advantage of.”

However, there are still some unknown details for producers seeking to take that opportunity, particularly when it comes to the 45Z since it is only a three year credit and it starts January 1, 2025. “So folks are making decisions…and will continue to make decisions and significant investments based on what they think or hope that credit is going to work without knowing for certain how much of the maximum dollar they’re going to get,” said Funk.

Listen to an interview with Funk here.
2023 ACE interview - Donna Funk, Pinion 9:44

2023 ACE Conference photo album