MCGA urges approval of robust, accurate 45Z tax credit guidance
In comments today to USDA, Minnesota Corn Growers Association (MCGA) board member Richard Syverson urged the passage of robust, timely guidelines for the 45Z Clean Fuel Production Credit. Passed as part of the Inflation Reduction Act, 45Z will be available to sustainable aviation fuel (SAF) produced in 2025-27 that reduces lifecycle greenhouse gas emissions by about 50% or more compared to regular jet fuel.
Syverson urged the U.S. Treasury Department to pass the 45Z guidelines by Jan. 1, noting that they could impact producers’ 2026 crop decisions. He also urged the department to utilize the Argonne National Laboratory Greenhouse Gases, Regulated Emissions, and Energy use in Transportation (GREET) Model to calculate lifecycle greenhouse gas emissions for 45Z. GREET is the gold standard for calculating lifecycle greenhouse gas emissions of transportation fuel.
Syverson also urged policymakers to consider the climate impacts of individual conservation practices, not whether producers adhere to a prescriptive conservation program, as part of the 45Z GREET model. Additionally, he urged the Treasury Department to recognize increases in production efficiency and include a broader array of climate-smart practices and industrial decarbonization technologies at the biofuel plant level in 45Z.
MCGA is working closely with the National Corn Growers Association to represent the best interests of corn farmers in the 45Z tax credit guidance. As soon as the guidance is out, we will be sure to keep our members informed.
