Ethanol refinery at golden hour
Clean Fuel & 45Z

Understanding the 45Z
Clean Fuel Credit.

A simple guide to how the 45Z tax credit works and how farmers and agribusinesses can benefit from producing lower-carbon fuels.

The Basics

What is the
45Z Credit?

The 45Z Clean Fuel Production Credit is a federal tax credit designed to encourage the production of lower-carbon fuels in the United States.

It rewards fuel producers who make fuels with a lower carbon intensity — meaning fuels that have a smaller environmental impact from production to use. The lower the carbon intensity, the higher the potential credit.

This credit applies to fuels like:

  • Ethanol
  • Biodiesel
  • Renewable diesel
  • Sustainable aviation fuel

Unlike older programs, 45Z focuses on the full lifecycle of the fuel and gives bigger rewards for using lower-carbon feedstocks and production methods.

Why It Matters

Why this matters for farmers
and agribusinesses.

Even if you don't produce fuel yourself, the 45Z credit can still benefit you.

New Revenue Opportunities

Fuel producers are increasingly willing to pay more for feedstocks (like corn and soybeans) that come from farms using lower-carbon practices.

Incentives for Better Practices

Cover crops, reduced tillage, precision fertilizer use, and improved nitrogen management can help lower the carbon intensity of your crops — potentially increasing their value.

Supply Chain Pressure

Many fuel buyers and processors are actively looking for lower-carbon grain to qualify for higher 45Z credits.

Long-Term Opportunity

As the program continues, having a strategy around lower-carbon production can give you a competitive advantage.

In short: The 45Z credit is creating new ways for farmers to be rewarded for sustainable practices.

Why JAG Group

Cut through the
complexity.

Navigating 45Z can be confusing. The rules, calculations, and opportunities are still evolving, and many producers aren't sure where to start or how to capture the most value.

We bring together:

  • Deep knowledge of agricultural practices that lower carbon intensity
  • Experience with sustainability programs and data tracking
  • Connections to the right tools and partners needed for measurement and verification
  • A focus on practical strategies that make sense for your operation and bottom line

We don't just explain the program — we help you understand what it means for your farm or business and how to take action.

How We Help

Practical support
at every step.

Education & Strategy

Clear explanations of how 45Z works and what opportunities exist for your operation.

Carbon Intensity Assessment

Help evaluating which farming practices can lower your carbon intensity score.

Data & Measurement Support

Connecting you with tools and systems to track and document the practices that matter for 45Z.

Program Participation Guidance

Guidance on how to engage with fuel producers and participate in ways that make sense for you.

Ongoing Support

Help staying up to date as rules and opportunities continue to develop.

Who It's For

Who this
is for.

This page is especially helpful for those across the agricultural clean fuel supply chain.

  • Grain producers (corn and soybean farmers)
  • Agribusinesses and cooperatives
  • Ethanol and biofuel plants
  • Anyone in the agricultural supply chain interested in clean fuel opportunities
Get started

Ready to explore
45Z opportunities?

The 45Z credit is creating real opportunities — but only if you understand how to take advantage of them. Let's talk about what this could mean for your operation.