Growth Energy Marks IRA’s Birthday with Call for Action on 45Z

WASHINGTON, D.C. - Growth Energy-the leading voice of America's biofuel industry-urged the White House to swiftly finalize clear, flexible guidance for the 45Z clean fuels credit, which was signed into law two years ago this week.

"After two long years, we're eager to see this administration's clean fuel incentive reach its full potential," said Growth Energy CEO Emily Skor. "That's why we've been working closely with the administration and our bipartisan champions on Capitol Hill to ensure the Department of Treasury finalizes flexible guidance for 45Z, so farmers and biofuel producers can plan and invest ahead of the next harvest.

"Properly implemented, 45Z could be the starting pistol for rural communities waiting to access new economic opportunities and deliver on the promise of climate-smart agriculture. To unlock those investments, the White House must avoid pitfalls that encumbered its approach to the 40B sustainable aviation fuel (SAF) credit. That means setting the new guidelines without delay, and sending a strong market signal that all low-carbon innovations on the farm and at the plant will be properly rewarded.

"President Biden said that farmers would provide 95 percent of SAF over the next two decades, and this anniversary is a wonderful opportunity to move us closer to that goal."

Starting in 2025, the president's 45Z clean fuel production tax credit will become the primary incentive for the production of low-carbon fuels in transportation on the ground and in the air. According to an analysis published by Growth Energy on the first anniversary of the IRA, a properly implemented 45Z tax credit could add $21.2 billion to the U.S. economy, generate nearly $13.4 billion in household income, support more than 192,000 jobs across all sectors of the national economy, and provide farmers with a 10 percent premium price on low carbon corn used at a bioethanol plant.