With the potential for sustainable aviation fuel to have major impacts on ethanol markets, ethanol producers are looking for ways to take advantage of carbon tax credits. The 40B program acted as a transitional step, giving some guidance into what a carbon tax program could look like. David Zimmerman, President and CEO of Big River Resources says looking ahead to 2025 programs, he hopes the 45Z program will include tax credits for practices such as no-till, cover crop, and nitrogen management.
“Now, the early indications we have seen are that they made a run at it for a different tax credit, and they bundled all three of those agronomic practices, together,” says Zimmerman. “There’s probably not a farmer in this county that does all three of those, it just doesn’t work for everyone’s farm.”
Zimmerman adds that 2025 CI programs have been delayed because of a lack of information on what tax credits would be.
