WASHINGTON, D.C.—Progress Vitality, the nation’s largest biofuels commerce affiliation, marked the one-year anniversary of the Inflation Discount Act (IRA) by releasing new knowledge on the financial, employment, and agriculture market potential of the invoice’s Part 45Z clear gasoline manufacturing tax credit score.
“45Z represents an historic alternative for the American bioeconomy, however the invoice’s last influence will depend upon its implementation,” mentioned Progress Vitality CEO Emily Skor. “This new analysis not solely illustrates the large financial potential of this key tax credit score—it additionally underscores why it’s so necessary for the U.S. Treasury to undertake the best strategy in administering the credit score. To ship on its potential, 45Z should reward the complete array of improvements happening on the farm and in America’s bioprocessing amenities, together with applied sciences like carbon seize and sequestration and local weather good agriculture.”
When it was enacted a 12 months in the past, the biofuels business praised key IRA provisions, together with $500 million earmarked for biofuels infrastructure, a sustainable aviation gasoline (SAF) tax credit score (40B), an expanded carbon seize tax credit score (45Q), and the clear gasoline manufacturing tax credit score (45Z). Based on Progress Vitality’s new knowledge, if applied correctly the 45Z tax credit score alone would add $21.2 billion to the U.S. economic system, generate practically $13.4 billion in family earnings, assist greater than 192,000 jobs throughout all sectors of the nationwide economic system, and supply farmers with a ten % premium value on low carbon corn used at an ethanol plant.
“The U.S. Treasury can unleash these advantages by absolutely adopting the U.S. Division of Vitality’s (DOE) Greenhouse Gases, Regulated Emissions, and Vitality Use in Applied sciences (GREET) mannequin—the perfect, most correct lifecycle evaluation (LCA) mannequin obtainable today-for each aviation and non-aviation fuels,” Skor added. “Regulators can not afford to overlook this chance. We stay up for working with our champions in Congress and the administration to verify we implement the IRA in a means that maximizes each its environmental and its financial advantages.”
The analysis was commissioned by Progress Vitality and ready by Agriculture and Biofuels Consulting LLP. To learn the complete report, click on right here.
