The biofuels industry has been waiting for the 45Z Clean Fuel Production Credit for a long time now, and the wait is likely to get even longer with a new administration taking over.

Will the Biden Administration try to rush rules out before the inauguration? Will Congress extend the tax credits 45Z was supposed to replace before the end of the year? Will 45Z be extended for longer than the three years it is scheduled for?

“Unfortunately, there’s more questions than answers,” said American Coalition for Ethanol CEO Brian Jennings during an interview at the NAFB Convention last week. “The tax credit supposed to kick in in 2025 on January 1st and so it will likely be the the Trump treasury that decides the rules for this. Now usually when a new president comes in, they put a sort of a freeze on any pending rulemaking. So there could be further delay in knowing what the rules are, but we also look forward to working with the Trump administration to make sure there’s common sense and flexibility for agriculture practices to make sure that this tax credit works for everyone.”

Jennings says they are working with Congress to renew or extend those tax credits that are set to expire at the end of 2024, including the Second Generation Biofuel Producer Tax Credit, and further extend the life of 45Z beyond its current 2027 sunset period. “And so we’re going to be working with Republican champions in Congress to try and get 45Z extended so there’s longer term tax certainty for biofuel producers,” said Jennings, who was also featured in this week’s Agri-Pulse Newsmakers program recorded at NAFB.

NAFB24 Brian Jennings, ACE (6:21)

2024 NAFB Convention Trade Talk photos