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.

Gail_Starkweather_10_22_15_USA_IA_Starkweather_Farm_052.jpg

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

Related Stories
Placements and marketings beat expectations, but declining on-feed totals and feeder constraints keep the supply story supportive for cattle prices into 2026. Dr. Derrell Peel, with Oklahoma State University, joined us to break down cattle-on-feed numbers and provide his broader market outlook.
USDA Rural Development Director for Kentucky, Travis Burton, joined us to discuss the Princeton facility (formerly Porter Road Meats), now backed by the USDA, and its role in expanding domestic meat processing capacity.
Farm CPA Paul Neiffer joined us to break down the recent Fifth Circuit Court decision overturning a prior Tax Court decision on self-employment tax for limited partners, the ruling’s impact on farmers, and potential next steps in Congress.
Americans for Prosperity Arkansas Director Ryan Norris talks energy infrastructure, regulatory reform, and the role of critical minerals in supporting rural America.
Pennsylvania Farm Show scholarship recipient Elizabeth Dice discusses her award, her background in farming, and her path forward in the agriculture industry.
Mike Steenhoek with the Soy Transportation Coalition discusses supply chain challenges facing agriculture as snow, sleet and ice threaten most of the Eastern U.S.

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.

LATEST STORIES BY THIS AUTHOR:

Dr. Seth Meyer Concludes Service; Dr. Justin Benavidez Appointed USDA Chief Economist
USDA data indicates that 13.7 percent of U.S. households experienced food insecurity in 2024, the highest rate since 2014, even as most households remained food secure.
Weather, Tight Supplies, and Planning Shape Farm Decisions
Cotton demand depends on demonstrating performance and reliability buyers can rely on, not messaging alone.
Read the full press release published by the U.S. Department of Agriculture.
Lily Pryer’s passion shows how National FFA members are making an impact in classrooms and communities all across Rural America.