Reuters reported USDA Secretary Tom Vilsack is “confident” the clean fuels tax credit will be finalized by end of the Biden administration in January. “I’m confident that we’re going to get‘er done,” Vilsack said at a summit in Washington, D.C., hosted by the biofuels trade group Growth Energy. Vilsack indicated he’s hopeful the Department of Treasury can identify practices that result in guidance for the 45Z tax credit that works better for U.S. producers. He expressed hope that more crops and practices can be included in the guidance, compared to the current 40B credit. Vilsack suggested the timeline is focused on “end of the year, beginning of next year.” The 45Z Clean Fuel Production Credit is set to take effect on Jan. 1, 2025, replacing several expiring biofuel tax credits.
Industry stakeholders and lawmakers have been urging for timely guidance to provide certainty for producers and the biofuels supply chain. USDA is hoping to make more feedstocks and individual farming practices eligible for the credit and is in conversation with the energy and transportation departments about how to do so, Vilsack said. “We are acutely aware of the calendar. To the level it can be, it’s on a fast-track,” Vilsack said. The Treasury Department will ultimately issue the rule.
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