John Deere is helping farmers prepare for potential revenue opportunities under the federal 45Z Clean Fuel Production Tax Credit by emphasizing the importance of regenerative agriculture practices and accurate farm records.
Under the 45Z program, eligible biofuel producers, including ethanol and biodiesel facilities, may qualify for tax credits by using lower-carbon agricultural feedstocks such as corn, soybeans, sorghum, and spring canola.
Practices that may help reduce feedstock carbon intensity include reduced tillage, no-till farming, cover cropping, and improved nutrient management.
Participation by farmers is voluntary, and some producers may already use qualifying practices.
Eligible fuel production must occur between January 1, 2025, and December 31, 2029.