The US biofuels industry is disappointed with the long-awaited guidelines for clean fuels tax credits, which were released by the U.S. Treasury officials on Friday. The guidance provides clarity on eligible entities and fuels, as well as lifecycle emissions determination, but experts say it falls short of expectations.
Geoff Cooper, with the Renewable Fuels Association, stated that while the guidance allows producers to claim the tax credit, it lacks specific details about the new GREET Model and emissions rate information. This leaves producers in limbo, unable to determine their eligibility for the incentive levels under the tax credit.
John Fuher, with Growth Energy, concurred, saying that he needs to know what type of incentive levels might be available to his organization under this tax credit. Unfortunately, the released guidelines do not provide this information, and it is expected to come out early next week.
The Treasury Department’s guidelines also fail to consider the USDA’s Climate Smart Agriculture recommendations, which would have allowed farmers to benefit from the program. Cooper and Fuher express their disappointment with the lack of consideration for these recommendations, highlighting a need for further clarification and guidance on this matter.
Source: https://www.brownfieldagnews.com/news/long-awaited-45z-tax-credit-guidelines-not-very-helpful