The biofuels industry is frustrated with Biden’s 45-Z tax credit guidance

With just days left in office, the Biden Administration has released information about the 45-Z tax credit. However, biofuels groups argue the plan lacks critical details.

When it comes to renewable fuels, the Treasury Department says used cooking oil will not be included in the 45-Z credit, and they say that is to help limit concerns around mislabeled oils. In addition, the Energy Department is also expected to update the GREET model, which will determine the emissions rated for 45-Z.

Industry groups say they are disappointed by the release, saying it lacks key details farmers need.

The Renewable Fuels Association’s Geoff Cooper says, “We do not believe this guidance alone will spur the investment, innovation, and job creation in the clean fuels sector that Congress and the Administration intended. It simply isn’t bankable, investable, or otherwise actionable for the vast majority of biofuel producers.”

Related Stories
Row crop losses in 2025 are outpacing last year. With no disaster aid yet approved, many operations face a tough financial bridge to 2026 even as Farm Bill improvements remain a year away.
Experts say farmers and ethanol producers would benefit from a risk-based ILUC system that protects forests without relying on speculative modeling.
The White House is now preparing to restore an Endangered Species Act (ESA) rule from the first Trump Administration.
Mary-Thomas Hart, with the National Cattlemen’s Beef Association, discusses the latest WOTUS developments and their implications for agriculture.
A massive rail merger could significantly impact North American agriculture and trade flows.
Urea and phosphate see the biggest price relief from tariff exemptions, but nitrogen markets remain tight, and spring demand will still dictate pricing momentum.

LATEST STORIES BY THIS AUTHOR:

China continues to buy U.S. soybeans toward its 12 MMT commitment, as analysts cite data gaps, delivery timing questions, and muted market reaction.
FarmHER Nikki Boxler, aka The Maple Farmer, blends tradition with innovation, tapping into a bold new future for maple syrup.
As the new year begins, both farmers and rural families are taking stock of their finances and planning ahead for 2026.
Trade uncertainty—especially regarding soybeans—continues to weigh on future outlooks, even as farm finances and land values remain resilient.
Sen. Deb Fischer reintroduces the HAULS Act to update hours-of-service exemptions and definitions affecting livestock and agricultural haulers. She joins us on Market Day Report to share more about her proposed legislation.
Strong crush demand and rising ethanol production are pressuring feedstocks, as traders monitor storage risks and supply chain uncertainty and await the upcoming January WASDE report.