Over the past few years, discussions surrounding the 45Z tax credit have often ended with uncertainty and more waiting for guidance.
“Just to step back, 45Z, the feedstock portion, is an opportunity that allows a premium for low-carbon-intensity bushels.”
Deb Green is the chief operating officer at Big River Resources.
“That carbon intensity is measured with electricity, natural gas, and a big component is the feedstock, the corn that comes in. And so that feedstock has a carbon intensity value.”
For years, farmers have been searching for answers about how to take advantage of the tax credit and how those benefits can be passed along to them.
“Don’t assume that you don’t qualify because it is very possible the practices that you are already doing qualify you for some incentive,” Green shared. “With the practices that revolve around reduced till, strip till, cover crops, nitrogen stabilizer, manure, and there’s a lot of different intricacies within those, so if you’re interested in that premium, make sure to just talk to someone about it. Because again, I can’t emphasize enough that it’s very possible you qualify without changing a practice.”
Green added that farmers may even qualify for additional premiums by making simple adjustments to their farming practices.
The deadline to submit information for premiums through Big River Resources is November 30.
