Tax Credits
for Low Carbon Crops

The Future of Profitability for Sustainable Farming Practices

45Z Tax Credits

In 2022, 45Z was introduced as part of the Inflation Reduction Act. The program aims at reducing carbon emissions from biofuel production supply chains. Recently, the tax credit was locked in through 2029 by the One Big Beautiful Bill.

The idea is simple – the lower the Carbon Intensity that goes into making of a product (like corn or soybeans), the lower the carbon footprint of the end product (such as ethanol or biodiesel). The lower the CI of the fuel, the more tax credits money for everyone involved.

Here's an example:

The default corn CI Score is 29.1.
Reducing CI results in a tax credit worth an average 5.8 cents per point per bushel.
An average CI Score of 11.5 results in a credit of $1.02/bu. A sharable value of $204/ac for a 200bu/ac corn yield.

Here’s How Farmers Can Earn Premiums from Lowering Carbon Grain

While the 45z tax credits don’t apply directly to farms, growers are the first step in this whole process. Every bushel produced in 2024, or later, used in biofuel production will need to have its CI Score verified. CI Certification by Continuum Ag is the first of its kind process, auditing farm practices based on the ISO 14065/14064 standards. The result, maximum sharable value and fraud avoidance for biofuel producers and tax credit buyers.

Tax Credits for Low Carbon Crops

Tax Credits
for Low Carbon Crops