“We spent the entire year urging Treasury to issue guidance by September because the biodiesel and renewable diesel industry is trying to navigate the change from the blender excise tax credit to the producer income tax credit. Our industry is already feeling the impact of the delays and uncertainty.”
Biofuel producers are eligible for the credit only from the date of their registration letter, adding another layer of complexity. Many have reduced production or even shut down plants due to the lack of clarity.
Geoff Cooper, president of the Renewable Fuels Association, remains hopeful for interim guidance -
“While we agree that final regulations for 45Z seem highly unlikely before Jan. 20, we remain hopeful that the Administration will at least issue some sort of guidance or safe harbour before Jan. 1.”
Industry leaders warn of broader economic impacts on rural communities and agriculture partners who invested in carbon-reduction technologies.
Growth Energy CEO Emily Skor shared her concerns - “To leave the credit unfinished would jeopardize the economic benefits this credit could deliver to America’s rural communities.”
Stakeholders continue to push for swift action, emphasizing that delays disrupt middle America’s economic progress.