MARSHALL—A renewable fuel tax credit set to expire in 2027 will now continue through 2029, thanks to a provision in the federal budget bill signed by President Trump.
The Minnesota Bio-Fuels Association says the extension of the Clean Fuels Production Tax Credit could provide significant benefits to local producers. Executive Director Brian Werner said, “Through the end of 2029. And so that’s a good thing because that gives up to a dollar a gallon in ten-cent increments to biofuels that have lower emissions than gasoline.”
The credit, created by the Inflation Reduction Act, offers incentives based on emissions reductions compared to gasoline. Werner noted that many Minnesota producers already meet those standards. “And that a lot of the ethanol that we make in Minnesota currently has 40 to 50 percent less greenhouse emissions than gasoline. So this is a production credit that is going to be really beneficial to biofuels producers in Minnesota.”
The bill also narrows eligibility for the 45Z credit, restricting it to fuels made from feedstocks grown in the U.S., Canada, or Mexico.
