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On Feb 3rd 2026 45z we received updated guidance that confirmed corn grown by farmers would be included with carbon scoring. We currently do not have the final rulings on how to score the corn, but that new calculator is expected in late spring\/early summer 2026. While there may be some changes to the calculator from what was previously released, calculations are still expected to revolve around tillage practices, Nitrogen uses and cover crops. <\/p>\n\n\n\n On June 26th the USDA FD-CIC corn calculator was released for the scoring of Reduced CI corn to be used for ethanol production. This is intended to be the final calculator used for scoring corn, although in future years minor tweaks could be made. In the Fall of 2026, we anticipate receiving an updated GREET calculator that allows us to apply the Reduced CI corn we scored to our overall plant score.<\/p>\n\n\n\n On January 1, 2025, the 45Z Clean Fuel Production Credit took effect, offering tax incentives to produce transportation fuels in the United States. This program specifically rewards fuels produced using low-carbon methods, encouraging more sustainable energy solutions via income tax credit issued to ethanol plants.<\/p>\n\n\n\n What is Carbon Intensity (CI)?<\/strong><\/p>\n\n\n\n CI is a metric that ethanol has been using for years to claim credits & premiums for producing domestic, renewable fuel. The lower your CI score is, the better. Field location, yield, nitrogen management, cover crops, and tillage are the primary management practices influencing corn CI scores.<\/p>\n\n\n\n How do I lower my Carbon Intensity (CI) score?<\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n What is needed to\u00a0qualify for 45Z\u00a0grain production?<\/strong><\/p>\n\n\n\n Collect Field level data including dates, tillage practices, yield, acres and nutrient management\u00a0by an approved data collection firm to formulate a CI score.<\/p>\n\n\n\n Current programs offered by companies that required carbon sequestration on your acres for payment don\u2019t qualify for 45Z program.<\/p>\n\n\n\n Outlook<\/strong><\/p>\n\n\n\n 45Z and biofuel credits have bipartisan and executive support. We are still awaiting final guidance on the program and scoring; we remain optimistic that the current administration will move forward with it.<\/p>\n\n\n\n Contact us about our CI origination program.<\/strong> <\/p>\n\n\n\n Tony Niess Big Beautiful Bill Act Update On July 3rd 2025 the 45Z tax credit was passed as part of the One Big Beautiful Bill Act. With the passing of the bill there was some key changes made between the house and senate. The 45Z tax credit expiration was extended from 2027 to 2029. Only feedstock from […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-109","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/absenergy.org\/grain\/wp-json\/wp\/v2\/pages\/109","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/absenergy.org\/grain\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/absenergy.org\/grain\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/absenergy.org\/grain\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/absenergy.org\/grain\/wp-json\/wp\/v2\/comments?post=109"}],"version-history":[{"count":92,"href":"https:\/\/absenergy.org\/grain\/wp-json\/wp\/v2\/pages\/109\/revisions"}],"predecessor-version":[{"id":562,"href":"https:\/\/absenergy.org\/grain\/wp-json\/wp\/v2\/pages\/109\/revisions\/562"}],"wp:attachment":[{"href":"https:\/\/absenergy.org\/grain\/wp-json\/wp\/v2\/media?parent=109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Big Beautiful Bill Act Update<\/strong>
On July 3rd 2025 the 45Z tax credit was passed as part of the One Big Beautiful Bill Act. With the passing of the bill there was some key changes made between the house and senate. The 45Z tax credit expiration was extended from 2027 to 2029. Only feedstock from North America can be utilized for production of ethanol to be eligible for the credit. The tax credit is transferable which is a key element for cooperative ethanol plants to monetize the credit by sale. Indirect Land Use Change has been artificially raising the CI score of ethanol facilities and has now been removed as part of the One Big Beautiful Bill. All these changes were very positive in relation to the production of ethanol here at Absolute Energy and our 45Z program.<\/p>\n\n\n\n
What is 45Z?<\/strong><\/p>\n\n\n\n
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Climate Smart Origination Coordinator
Cell: 641-220-2281 | Ph: 641-326-2605
Email: tony.niess@absenergy.org<\/p>\n","protected":false},"excerpt":{"rendered":"