What we know about 45Z as of now

If you’re a corn producer in the U.S., an ethanol industry participant, an oil industry participant or an airline industry participant, you’ve likely heard the term "45Z" floated around in recent weeks/months in several different circles.

From incoming Trump administration officials to environmentalists to farmers, everyone is curious about 45Z. So what is 45Z? Why does it matter? And where do we currently stand? Let’s dive in.

What is 45Z?

Put in the simplest way possible, 45Z is a proposal that would provide tax credits for clean fuel producers based on the carbon intensity (CI) score of the fuel produced. In other words, it is an incentive that the Biden administration added to its Inflation Reduction Act (IRA) to encourage the production of lower-emission fuels that wouldn't...