U.S. Farmers Positioned to Benefit from Updated 45Z Clean Fuel Production Credit Regulations

RFD Farm Legal & Tax expert Roger McEowen shares guidance on the 45Z Clean Fuel Production Credit, its impact on renewable energy and agriculture, and what producers should know moving forward.

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FarmHER, Inc.

WASHINGTON, D.C. (RFD NEWS) — The U.S. Treasury and IRS have released long-awaited guidance on the 45Z Clean Fuel Production Credit, signaling a major shift in how the federal government incentivizes domestic renewable energy production. The guidance aims to support U.S. agriculture while promoting cleaner fuels like corn ethanol and soy biodiesel.

Roger McEowen with the Washburn School of Law joined us on Monday’s Market Day Report to break down the new rules.

In his interview with RFD NEWS, McEowen outlined key points, including the North American mandate that protects domestic agriculture and the removal of indirect land-use change penalties, which lowers the “entry bar” for corn and soybean producers.

McEowen also addressed concerns around farm data privacy, explaining the role of the “qualified certifier” and who has access to the information submitted. He discussed challenges around carbon capture technology, noting that while the technology exists at ethanol plants, infrastructure and permitting remain bottlenecks to moving CO₂ efficiently.

For farmers, McEowen emphasized key considerations as they plan operations under the new guidance, including eligibility requirements and compliance considerations.

READ MORE: Firm to Farm: Proposed I.R.C. §45Z Regulations

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Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

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