IRS Issues 45Z Proposed Regulations That Essentially Say Nothing

The Department of Treasury (IRS) issued proposed regulations on Friday for Section 45Z that does not help farmers at all

Photo by Chris Linnett on Unsplash

The Department of Treasury (IRS) issued proposed regulations last Friday on Section 45Z. Section 45Z was enacted into law as part of the Inflation Reduction Act back in August of 2022. The Act required the administration to issue formal guidance on how to implement Section 45Z by December 31, 2024. As you can see, the administration issued guidance after this date and the guidance that they issued really has little or no value.

Farmers still don’t know what type of climate smart agricultural practices are required to qualify the biofuel producer for any credit.