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45Z CF GREET Model and new guidance to enhance value of fuel production tax credit

September 9, 2026 |

In Washington, Growth Energy commended the Internal Revenue Service (IRS) for the guidance it released in conjunction with the related 45Z CF GREET Model update that clears a path for farmers and biofuel producers to further enhance the value of the 45Z Clean Fuel Production Tax Credit.

Specifically, the guidance stipulates that qualifying low-carbon agricultural practices consistent with the technical guidelines released earlier this year by the U.S. Department of Agriculture (USDA) can be used in the calculation of the 45Z credit. The guidance also provides transition rules for applying changes made to 45Z by the One Big Beautiful Bill Act (OBBBA), including a requirement that emissions rates exclude emissions attributable to flawed, outdated, and inaccurate indirect land use change (ILUC) calculations.

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Category: Policy

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