The Trump administration inched closer Tuesday to detailing how a clean fuels tax credit passed by Democrats could benefit farmers.
The Treasury Department released a draft of proposed regulations for the tax credit, in Section 45Z of the tax code, reasserting that farm practices that reduce greenhouse gas emissions will count toward eligibility.
But some key aspects of the credit remain to be worked out, including the finer points of how the benefits of those practices are calculated. The modeling the government uses will determine, for instance, whether ethanol made from corn qualifies as a greenhouse gas-reducing product eligible for the credit.
The Renewable Fuels Association, an industry group, called the proposal “a step in the right direction toward providing the clarity and certainty that ethanol producers are seeking.”
