On January 10th, the long-await 45Z renewable biofuel tax credit guidance was released. It provides little clarity on feedstocks, farming practices or carbon intensity scores crucial for biofuel producers and farmers.

The Renewable Fuels Association and Growth Energy noted the need for details on climate-smart agriculture and flexible supply chains. Clean Fuels Alliance America highlighted missing data critical to feedstock agreements, while the American Coalition for Ethanol and Iowa Renewable Fuels Association expressed frustration over the guidance’s limited actionable content.

Trade groups like the National Oilseed Processors Association, American Soybean Association, National Sorghum Producers, and Iowa Corn Growers Association emphasized the guidance’s insufficiency to capitalize on biofuels’ potential.

Many hope the incoming administration will provide clearer, more durable rules to ensure industry stability, rural economic benefits and environmental goals. Stakeholders, including Senator Joni Ernst, criticized the delays and vowed to push for stronger policy under new leadership to boost biofuels and agricultural innovation.

Read the latest on the 45Z tax credit guidance on renewable fuels here.