Ag-Powered Fuels: 45Z Clean Fuel Production Credit

By Samantha Ayoub and Faith Parum

American Farm Bureau Federation

The One Big Beautiful Bill Act (OBBBA) made several important changes to the Clean Fuel Production Credit (45Z). Most notably, it extended the credit through 2029, providing biofuels producers with an additional two years of investment beyond the original 2027 expiration date. While the credit still has no requirements to pass through any of the credit to farmers and feedstock producers, the OBBBA clarified key provisions related to feedstock eligibility, emissions measurement and credit calculation, which are especially relevant for U.S. farmers. This Market Intel analyzes what the changes to 45Z mean for farmers.

READ MORE