“The guidance released today is an investment in U.S. farmers, who stand ready to feed and fuel the world while also fueling the U.S. economy. We look forward to working with Congress and the incoming Trump administration to build on this progress and develop final guidance that supports rural America.”
With a significant rise in imported waste feedstocks for biofuel production in recent years, ASA and NOPA have highlighted the importance of ensuring the legitimacy of these imports while supporting U.S. farmers.
The Treasury’s notice responds to this issue by confirming that used cooking oil will remain ineligible for the 45Z credit through the GREET model until regulations for imports are finalized.
NOPA has also expressed gratitude to Treasury for providing the guidance needed to support U.S. crushers and farmers, furthering the nation’s energy independence.
The association pointed out that the influx of imported used cooking oil has posed risks to American agriculture, but restricting eligibility for the 45Z credit will benefit domestic farmers and processors.
NOPA remains committed to working with Congress and the incoming administration to secure fair opportunities for soybean farmers and foster long-term energy independence in the U.S.
By September 2024, the U.S. had imported 5.4 billion pounds of used cooking oil and tallow, surpassing 2023’s record levels. The Treasury’s regulation proposal will enable taxpayers to claim credits while the rulemaking process continues.
Additional guidance on biofuel tax credits is anticipated from the U.S. Departments of Agriculture and Energy in the near future.