Climate Smart Tax Credits
From the Ag Information Network, I’m Bob Larson. The American Farm Bureau is raising concerns about the unlevel playing field currently created by the 40B and 45Z tax credits.AFBF President Zippy Duvall met with White House officials recently to relay that while America’s farmers stand ready to grow the crops necessary to produce clean fuels, they need fair treatment …
DUVALL … “The Clean Fuel Production Credit and the Sustainable Aviation Fuel Credit have the potential to be valuable incentives to help produce biofuels that will help lower the nation’s carbon emissions and to keep American farmers in business. Under the current model, foreign feedstocks receive preferential treatment over our domestic feedstocks.”
Duvall says America’s farmers and ranchers need adjustments to the tax credits sooner rather than later …
DUVALL … “45Z is scheduled to go into effect next year, and our farmers need to make production decisions that may affect whether or not their crop is eligible as a feedstock. So, we urge Mr. Podesta and the administration to prioritize America’s farmers by making domestic feedstocks the preferred supply for clean fuel production credits and to revise the guidelines to make the goal of producing biofuels more attainable.”
Duvall says there should be more climate-smart agricultural practices available to grow crops that would be eligible for this credit.
He also believes the conservation requirements should be unbundled to maximize the flexibility for farmers who want to participate.