By Jared Mullendore, RFA Director of Government Affairs
Signed into law in August 2022, the Inflation Reduction Act (IRA) represents the most significant federal commitment to low-carbon biofuels since the Renewable Fuel Standard was expanded by Congress in 2007. In addition to extending several current biofuel credits and incentives, the bill creates new tax credits for clean fuel production, sustainable aviation fuel (SAF), and expands the credit for carbon capture, utilization, and storage (CCUS).
These credits have the potential to significantly accelerate production, use, and innovation across the ethanol industry. However, as with any legislation of this magnitude, the devil is in the details. Determinations relating to lifecycle emissions modeling, eligible entities, transferability of credits, as well as prevailing wage and apprenticeship requirements will all impact the ethanol industry. The federal agencies charged with putting the IRA into action are hard at work writing these rules which will determine much of the success of the bill.
As tax credits are central to the biofuel provisions in the IRA, the Department of Treasury and Internal Revenue Service will guide much of the implementation process. However, consultation with other agencies like the U.S. Department of Agriculture (USDA), Department of Energy (DOE), and Environmental Protection Agency (EPA) will also be involved. RFA has already been extensively involved in both formal and informal comment and input processes including submission of written comments, participation in roundtables, and meeting with agency officials.
At the 2023 National Ethanol Conference, taking place February 28 through March 2 in Orlando, RFA is excited to bring together a panel of experts on the tax credits within the IRA and who are working daily on its implementation. First, Dana Jackson is the National Leader for the Federal Credits and Incentives practice for RSM US. Jackson consults on issues emerging from energy tax credits and including the IRA’s Clean Fuel Production Credit as well as SAF and CCUS credits. Next, Jorge Medina is the co-leader of Pillsbury Winthrop Shaw Pittman’s Renewable Energy practice. Medina regularly works on federal tax policy issues involving renewable energy including the IRA implementation process at Treasury and IRS.
With Medina’s legal knowledge of the IRA, Jackson’s accounting and consulting contributions, and policy awareness from RFA and others, the NEC session, “It’s Go Time! Implementing the Inflation Reduction Act” aims to provide a comprehensive update on the bill’s implementation, what we know, what is still being decided, and how the industry is likely to move forward.
For more information on the event and to register, click here. Advance registration saves participants $100 and ends on January 28.