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Clean Fuel News
Ag and Biofuel Groups Call for Reasonable Guidelines for Aviation Tax Credits
Via Morning AgClips
Agricultural and biofuel groups are urging federal agencies to adopt practical, farmer-friendly guidelines for the 45Z Clean Fuel Production Credit, a tax incentive designed to support low-emission fuels, including sustainable aviation fuel. In a March 25 letter to the U.S. Treasury, USDA, DOE, and the White House, more than 20 organizations said clear rules are needed so farmers can benefit from growing demand for biofuel feedstocks used in aviation.
The groups argue that farmers should receive credit for conservation practices already being used on the ground, such as cover crops and reduced tillage, because those practices can lower lifecycle emissions while improving soil health and resilience. They also stressed that uncertainty in the rulemaking process makes it harder for farmers and lenders to plan ahead and invest with confidence.
The 45Z credit is now under proposed federal rulemaking, with public comments due by April 6, 2026, and a public hearing scheduled for May 28, 2026. Under current federal incentive guidance, the credit can apply to low-emission transportation fuels, including sustainable aviation fuel, with higher per-gallon values available for projects that meet wage and apprenticeship requirements.
