The Clean Fuel Production tax credit was included in the 2022 Inflation Reduction Act and is meant to incentivize the production of clean fuels, like ethanol and sustainable aviation fuel. Minnesota Biofuels Association Executive Director Brian Werner said the guidelines for these tax incentives are scheduled to be released by the beginning of the year. “It’s really challenging to make investments or get capital financing for these investments at the (ethanol) plants that will reduce the carbon intensity of the finished ethanol if we don’t know what the guidance is and we don’t know what the rules of the road are going to be yet.” To secure the carbon emission reductions from the farm level, the government is now demanding an all-or-nothing bundled approach. “You have to do no-till, cover crops and efficient nitrogen fertilizer, all three of those practices on the same acreage and that’s not workable for a lot of Minnesota farmers.”
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