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ASA Supports Final 45Z Guidance to Expand Demand for U.S. Soybeans

May 28, 2026. Washington, D.C. Today, American Soybean Association Secretary Jordan Scott testified before the U.S. Department of the Treasury and Internal Revenue Service during a public hearing on proposed regulations for the Section 45Z Clean Fuel Production Credit, urging the administration to finalize timely guidance that supports U.S. biofuels and expands demand for American-grown soybeans.

Scott, a fifth-generation farmer from Valley Springs, South Dakota, highlighted the role of biofuels in strengthening domestic markets for U.S. soybean farmers at a time when the farm economy continues to face tightening margins and uncertainty.

“Federal tax credit certainty for the biofuel industry supports U.S. agriculture by bolstering market access and creating value-added opportunities for farmers,” Scott said. “Conversely, the lack of tax credit certainty affects the markets that U.S. soybean farmers depend on.”

In his testimony, Scott highlighted the importance of recent statutory changes to 45Z that improve the competitiveness of soy-based biofuels by removing indirect land use change penalties on agricultural feedstocks. He also voiced support for provisions limiting eligibility for the tax credit to biofuels produced using feedstocks sourced within the United States, Mexico and Canada.

Scott additionally encouraged Treasury and IRS to continue developing policy that would allow farmers to benefit directly from climate-smart practices, including no-till and cover crops, through USDA’s Carbon Intensity Calculator.

“To ensure that 45Z supports not only biofuel production, but also the farmers who produce homegrown biofuel feedstocks, Treasury and IRS must work urgently to issue final tax guidance before we enter the 2026 harvest season,” Scott said.

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The American Soybean Association (ASA) represents U.S. soybean farmers on domestic and international policy issues important to the soybean industry. ASA has 26 affiliated state associations representing 30 soybean-producing states and nearly 500,000 soybean farmers.

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