Contact: Emma Koehler
515-252-6249

JOHNSTON, IA – Today Iowa Renewable Fuels Association (IRFA) commended the United States Treasury Department for releasing final rules this week for the Section 48 Energy Credit, known as the Investment Tax Credit (ITC), that expands eligibility for renewable natural gas (RNG) producers. An earlier draft rule would have excluded key RNG production equipment. The final rule clarified that key equipment does qualify for the ITC. Generally, up to 30% of the cost of an eligible clean energy project qualifies for the ITC.

“This certainty is great news for RNG producers,” stated IRFA Executive Director Monte Shaw. “RNG producers have been eager for Treasury to issue this guidance, supporting the role RNG plays in transitioning to a cleaner future. Broader eligibility widens the doors of opportunity for additional producers and will benefit farmers. We are seeing increased interest in RNG production in Iowa and the possibilities are growing as new technology is closer to making RNG an attractive opportunity for pork producers. In turn, renewable fuel producers, like ethanol and biodiesel, can benefit from a low carbon energy source as well.”

Two RNG producers sit on IRFA’s board of directors. Verbio North America in Nevada converts corn stover into RNG and beneficial co-products. Near Doon, Gevo works with three Iowa dairies to produce RNG from manure.

“IRFA commends the Treasury Department for providing clarity for RNG producers,” added Shaw. “But I would be remiss if I didn’t continue to urge Treasury to provide the same certainty for biofuel producers by issues final guidance, or at least binding safe harbor provisions, for the 45Z clean fuel production tax credit. Our biodiesel producers are facing shutdowns due to the lack of a useable credit and other low carbon ethanol and sustainable aviation fuel (SAF) projects are unable to plan and move forward. Those producers also deserve certainty by the end of the year.”

The Biodiesel Production Tax Credit expires December 31, 2024. The new 45Z Clean Fuel Production Tax Credit is scheduled to begin on January 1, 2025 but no guidance has been issued yet.

The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 42 ethanol refineries capable of producing 4.7 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 10 biodiesel facilities with the capacity to produce 416 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.

###