The future of the 45Z tax credit, a clean fuel production credit aimed at reducing carbon intensity in biofuels, is at a crossroads as the industry navigates regulatory uncertainties and political shifts. 

Emily Skor, CEO of Growth Energy, a trade association representing more than 90 U.S. bioethanol plants and other industry stakeholders, outlined the tax credit’s potential benefits while emphasizing the importance of industry-wide collaboration and political advocacy to ensure that farmers can benefit from the tax credit last week at the Iowa Farm Bureau’s 106th annual meeting in Des Moines.

The 45Z tax credit, set to take effect Jan. 1, rewards biofuel producers for lowering the carbon intensity (CI) of their fuel. 

Ethanol plants can enhance their CI scores...