By Scout Nelson
Nebraska corn farmers are set to benefit from a recently extended federal tax incentive supporting the production of ethanol and other corn-based fuels. While some renewable energy tax breaks for solar and wind were eliminated in the new federal budget, the credit for low-carbon fuel production was kept in place.
This tax credit aims to promote the creation and use of cleaner-burning fuels made from grains like corn. These fuels help improve air quality and offer farmers continued opportunities to supply grain for energy production.
"The credit actually goes for production of lower carbon fuels that are used for transportation," said Chris Bliley, senior vice president of regulatory affairs for Growth Energy. "It includes on-road fuels as well as sustainable aviation fuel. And so, the lower in carbon, the higher the credit."
The incentive covers fuels used in vehicles and even in aviation. With growing demand for sustainable aviation fuel, this policy creates new markets for agricultural producers.
Neighboring states are also pushing for biodegradable jet fuel incentives, offering Midwest producers more chances to invest in low-carbon technology. Bliley explained, "To remain competitive, plants in Iowa and Nebraska and throughout the Midwest are investing in some of these key projects to lower their carbon intensity."
This tax extension aligns with global efforts such as the International Air Transport Association’s goal of reaching net-zero carbon emissions by 2050. As demand for clean fuel rises, Nebraska farmers supplying corn for ethanol production could see long-term benefits.
The continuation of this credit allows the renewable fuel sector to expand while maintaining a focus on economic growth and environmental responsibility.
Photo Credit:shutterstock-dickgage
Categories: Nebraska, Crops, Corn, Energy