10/05/2024

Ohio Soybean Association Applauds Ohio Lawmakers for Protecting Domestic Biofuels Feedstocks

The 45Z credit is set to take effect in January 2025

The Ohio Soybean Association (OSA) applauds the bipartisan group of lawmakers who are proposing an extension to the 45Z tax credit for low-carbon biofuels for 10 years. The new measure would also retain the incentive for products derived from domestic feedstocks, including soybean oil. The group includes Ohio lawmakers Sen. Sherrod Brown, who is co-sponsoring the measure in the Senate, and Rep. Marcy Kaptur, who is co-sponsoring a companion bill in the House.

The 45Z credit is set to take effect in January and would expire at the end of 2027. The value of the credit is determined based on the carbon intensity of the fuel produced and is not currently limited to domestic feedstocks. The USDA currently expects 14 billion pounds of soybean oil to be used for biofuel production in 2024-2025.

“Thank you to Sen. Brown and Rep. Kaptur for leading the way on this issue, prioritizing Ohio farmers and reducing the U.S. biofuels industry’s dependence on foreign feedstocks,” said Rusty Goebel, OSA president and a Williams County soybean farmer. “While the use of foreign feedstocks can play a role in producing domestically manufactured biodiesel, renewable diesel, and sustainable aviation fuel, the American taxpayer-funded 45Z tax credit should only apply to biofuels produced from domestic feedstocks by domestic fuel producers.”

Please select this link to read the complete article from CropLife.