Local biofuel plants are increasing their focus on carbon intensity scores for crops in preparation for a new tax credit.
The initial guidance for the 40B Sustainable Aviation Fuel tax credit that was released last month created confusion for growers, but it did lay the groundwork for what biofuel plants should do to prepare for the 45Z.
45Z does not start until 2025, but here is what you can expect:
- Plant operators will want to know more about the practices used on your operation for next season’s crops used for feedstocks, that way they can quickly qualify for the tax credit
- Plants will offer a premium for reducing carbon intensity, which can happen through no-till practices or nutrient management plans
- The tax credit could eliminate demands for additional climate-smart practices and reward the practices you are already doing to sequester carbon
