AFBF - American Farm Bureau Federation
06/18/2026 | News release | Distributed by Public on 06/18/2026 07:18
Changes to Clean Fuel Production Credit Will Support U.S. Farmers
Brian Glenn
Director, Government Affairs
Chad Smith
Associate News Service Editor, NAFB
Recent changes to the Clean Fuels Production Tax Credit could benefit farmers and ranchers in the future. Chad Smith has more.
Smith: Long-awaited updates to the Clean Fuel Production Tax Credit, known as 45Z, have been announced by the Department of Energy. Brian Glenn, director of government affairs for the American Farm Bureau Federation, says the changes allow for calculations of tax incentives using the GREET model.
Glenn: It's used to help determine the level of tax credit given. So, the GREET model consolidates all of the greenhouse gas emissions of each step of the biofuel supply chain, dependent on things like the form of transportation and farming practices, into a specific emission rate for a gallon of fuel.
Smith: The emission rate becomes a carbon intensity score, and the lower the score, the higher the tax credit. Congress authorized the change to the GREET model through the One Big Beautiful Bill Act last year.
Glenn: With this update, now only feedstocks that originate from the U.S., Mexico, or Canada can qualify for this clean fuel production tax credit, so that helps ensure that tax incentives are supporting the North American agricultural supply chain.
Smith: This credit can help support stronger demand for U.S.-grown feedstocks, which would be a big help to farmers in the future.
Glenn: We continue to urge USDA to provide greater flexibility for the accepted conservation practices from farmers when they determine the carbon intensity of the feed stocks. Farmers should be supported for lowering emissions of feedstocks, and should be adequately compensated for that.
Smith: Chad Smith, Washington.
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