New federal guidance on the 45Z Clean Fuel Production Tax Credit could give farmers greater opportunities to benefit from crops produced using practices that reduce greenhouse gas emissions. The Internal Revenue Service issued Notice 2026-53 this week, providing the 2026 emissions-rate table and guidance for calculating credits for qualifying transportation fuels. According to the IRS, the rules allow certain regenerative agricultural practices to be included when calculating the carbon intensity of agricultural feedstocks used for biofuels. The guidance also addresses manure-derived fuels and farm-specific manure management. The National Corn Growers Association welcomed the guidance, saying it provides needed clarity for farmers and fuel producers. NCGA President Jed Bower said the organization also wants Treasury to recognize a "book-and-claim" system that would allow environmental attributes to be transferred without physically segregating grain. Treasury is expected to issue a final 45Z rule by November, according to NCGA.
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