The American Soybean Association submitted comments April 6, 2026, to the Department of the Treasury and Internal Revenue Service calling for swift publication of final tax guidance for the Section 45Z Clean Fuel Production Credit, as uncertainty continues to impact soybean farmers, biofuel producers, and domestic markets.
ASA has been actively engaged throughout the development of the 45Z credit, emphasizing its importance as a long-term driver of demand for U.S. soy and a key component of the domestic biofuels economy.
In its comments, ASA highlighted soy-based biofuels as a critical value-added market, noting soybean oil accounts for more than one-third of domestic biodiesel and renewable diesel feedstocks. Continued uncertainty around the credit, the group said, is creating challenges across the supply chain.
ASA also supported recent updates to the credit, including removal of indirect land use change penalties that had disadvantaged U.S. agricultural feedstocks, helping strengthen soy’s competitiveness and support domestic demand.
The comments backed provisions prioritizing North American feedstocks and encouraged additional guidance to recognize conservation practices through USDA’s carbon intensity tools, creating potential new market opportunities for farmers.
ASA called on Treasury and IRS to finalize tax guidance quickly to provide clarity across the biofuels value chain and support continued growth in soy-based biofuels.
Comments