As Congress continues conversations on the future of the 45Z Clean Fuel Production Credit, the National Corn Growers Association (NCGA) cautioned lawmakers against recent changes proposed in the Senate.
“Our champions on Capitol Hill have dedicated an immense amount of time and attention to this complex issue,” said Kenneth Hartman Jr., Illinois farmer and NCGA President. “We hope that effort results in policy that works for American farmers. However, the proposed changes in the Senate reconciliation language cause some concern for corn growers.”
The Senate language grants fuels derived from foreign feedstocks the ability to claim 80 percent of the tax credit. NCGA prefers the approach the House took in its One Big Beautiful Bill Act, limiting access to the incentive for feedstocks produced or grown outside of North America. The Senate language also reduces the value of the synthetic aviation fuel (SAF) credit from $1.75 to $1.00, an action that could injure the new market’s growth potential which corn growers feel could have a substantial impact on their profitability for years to come. One bright spot in the Senate’s 45Z language is its allowance of transferability of the credit.
“We look forward to working with members of Congress to improve this legislation in a way that benefits the nation’s corn growers and the biofuel industry,” said Hartman.
To strengthen 45Z, NCGA supports inclusion of a “book and claim” accounting system for implementation of the credit, the expansion of eligible conservation practices, a reduction in the Carbon Intensity (CI) threshold for SAF to 30% and transferability for the full life of the credit.
