The federal 45Z Clean Fuel Production Tax Credit, which rewards ethanol plants for using low-carbon corn, faced major repeal threats earlier this year.
House proposals sought to eliminate the credit, but a bipartisan Senate package ultimately spared 45Z and extended it through 2031 — with some tightening expected around eligibility.
With 45Z locked in (for now), ethanol buyers are actively looking to line up corn that can qualify for these premiums. That means they'll be paying more for bushels grown with documented low-carbon practices — think cover crops, poultry litter, reduced tillage, precision nutrient management. Growers who start recording practices this season will be first in line to capture those premiums.
Encourage your growers to document 2025 practices starting NOW — and position Return® poultry litter and soil-health practices as essential tools to help lower carbon intensity scores. With political uncertainty still swirling around 45Z, the window to lock in this value stream is likely shorter than the current policy suggests. Now's the time to act.