American Carbon Alliance urges additional guidance on 45Z
The American Carbon Alliance (ACA) this week released a letter to the U.S. Treasury and the Internal Revenue Service urging them to continue to finalize rule making for the IRC Section 45Z Clean Fuel Production Credit, including any required updates to GREET models.
According to the letter from the ACA, the clean fuels market is intricately linked to agricultural inputs, feedstock production, fuel sales, futures trading, intermediary allocations and other factors. Understanding the new tax structure well in advance is crucial for navigating this complex ecosystem.
With the Sec. 45Z credit slated to come into effect on Jan. 1, 2025, their member companies and organizations may encounter significant challenges and business risks if the guidance is not promptly published. Delays in issuing guidance for the Sec. 45Z credit could jeopardize existing production and demand for low-carbon renewable fuels. Timeliness is key for businesses who are anxious to participate in the President’s goals of producing home-grown and produced Sustainable Aviation Fuels.
“This innovative production tax credit marks a significant shift in tax policy. It offers incentives for the domestic production of fuels based on their lifecycle greenhouse gas emissions rates, a first of its kind,” said Tom Buis, ACA CEO. “Our member companies and organizations, including landowners, ethanol producers, carbon capture pipeline companies, farmers and everyday citizens, have eagerly embraced this new energy future for America.”
Read the full letter at https://americancarbonalliance.org/wp-content/uploads/2024/05/45z-lette….
The American Carbon Alliance (ACA) is formed to be one unified voice for carbon capture pipelines, ethanol producers, landowners, farmers, construction trade workers and citizens that embrace this new energy future for America. Working together, this alliance will strengthen America’s agricultural economy, ensure a future marketplace for American produced liquid fuel and improve the environment for all.
Publisher's note: A free press is critical to having well-informed voters and citizens. While some news organizations opt for paid websites or costly paywalls, The Highland County Press has maintained a free newspaper and website for the last 25 years for our community. If you would like to contribute to this service, it would be greatly appreciated. Donations may be made to: The Highland County Press, P.O. Box 849, Hillsboro, Ohio 45133. Please include "for website" on the memo line.