ACE 2023 Conference Featured Tax Experts Covering How to Maximize on IRA Biofuel Incentives

Posted on 08/29/2023

Just over a year since the Inflation Reduction Act (IRA) was signed into law, marking the passage of what's poised to be the most transformative piece of legislation for the clean energy movement to propel low carbon fuel technologies through significant tax credits and benefits, the American Coalition for Ethanol (ACE) featured a panel of tax experts at its 36^th annual conference last week to cover enhancements to Sections 45, 45Q, 45V, 48 and the new Section 45Z of the Internal Revenue Code, and share insights on how to maximize on these incentives.

There are many details which affect the applicability and monetization of these tax credits for ethanol producers, and during the August 24 general session, three consulting firms - Christianson PLLP, Eide Bailly LLP and Pinion - helped untangle the details and develop strategies for maximizing on potential benefits for attendees.

"The Inflation Reduction Act is a monumental piece of legislation that has the ability to move the ethanol industry well into the future," said panelist Donna Funk, Principal-Partner at Pinion Global. "The 45Z tax credit is a huge opportunity every producer needs to understand how they can take advantage of."

"It is important to recognize the IRA is tax legislation which is affected by some of the most complex rules within the code," said panelist Bradley Pederson, Partner at Christianson PLLP. "It is critical to understand the ramifications of an ethanol plant board's decision to monetize these credits."

"The IRA opens a number of opportunities where the federal government will help pay for energy savings and carbon reduction initiatives in the ethanol industry. Rewards for carbon capture, conversion of biowaste into energy and retrofitting of facilities to be more energy efficient are all available at increased amounts compared to prior law," said Mel Schwarz, Director - Legislative Affairs and Implementation at Eide Bailly. "Political pressure to rescind some of the environmental incentives in the IRA does not appear to be directed at the ethanol industry. Both ethanol producers and their suppliers should prepare to take advantage of these opportunities."

Find a recap of the ACE Conference and speaker presentations at ethanol.org/events/conference.