Pivot Bio Applauds Treasury, IRS, DOE and USDA for Completing Guidance That Makes the 45Z Clean Fuel Production Tax Credit Work for American Farmers

New IRS Notice formally recognizes on-farm practices, including use of Pivot Bio nitrogen, in carbon intensity scoring for renewable fuels

Guidance covers fuel produced in both 2025 and 2026, opening near-term value for corn growers and ethanol producers

MINNEAPOLIS--(BUSINESS WIRE)--Pivot Bio, one of the world’s leading agtech companies, today applauded the U.S. Department of the Treasury, the Internal Revenue Service, the U.S. Department of Energy and the U.S. Department of Agriculture for taking the next steps to make the 45Z Clean Fuel Production Tax Credit fully operational for fuel producers who source feedstocks grown with regenerative agriculture practices.

On September 8, the Treasury and the IRS issued a notice formalizing the incorporation of USDA’s Feedstock Carbon Intensity Calculator into 45Z. In parallel, the Department of Energy released an updated 45ZCF-GREET model and user manual that includes the USDA calculator. Together, the two actions allow taxpayers to begin claiming the credit now, including ethanol made from corn grown using on-farm practices such as Pivot Bio’s nitrogen-fixing microbial products.

“This is a huge win for American farmers, for the biofuels industry and for U.S. energy security,” said Chris Abbott, chief executive officer of Pivot Bio. “Most importantly, 45Z gives farmers another opportunity to get more value from every acre. When a grower reduces conventional nitrogen, that decision now shows up in the carbon intensity score, and that value can find its way back to the farm gate. We are grateful to Treasury, the IRS, the Department of Energy and USDA for their continued focus on the American farmer and unlocking new technology, innovation and tools to help them be more successful.”

The 45Z guidance formally adopts the nitrogen use efficiency method USDA proposed earlier this year. A feedstock grower enters the total amount of synthetic nitrogen fertilizer used in producing that feedstock. Because Pivot Bio’s PROVEN® G3 allows corn growers to replace their use of synthetic nitrogen, it lowers the carbon intensity score in the approved calculator.

The guidance covers fuel produced in both 2025 and 2026, meaning early adopters who put these practices in place before the formal rules were published are not left behind. Treasury also included a transition accommodation for both years, treating the pre-application nutrient budget requirement as satisfied for crops planted before USDA finalized its guidelines.

“Aligning Treasury, DOE and USDA on how regenerative agriculture is calculated has been a long time in the making, and it took real persistence from staff across all three agencies,” said Marty Muenzmaier, director of environmental policy and programs at Pivot Bio. “The IRS notice paired with the updated model is sufficient authority for taxpayers to rely on and claim the credit today. A final 45Z rule is still expected later this year, but producers who are using Pivot Bio do not need to wait for it to begin participating.”

The updated model is available from the Department of Energy, and the IRS notice is available here.

About Pivot Bio

Pivot Bio, one of the world’s leading agtech companies, delivers patented crop nutrition technologies that harness the power of nature to help farmers reliably and productively grow the food the world needs in the face of increasing volatility. Currently available in North America and soon in Brazil, the company’s products represent a breakthrough innovation and one of the agriculture industry’s most promising solutions. Pivot Bio has been recognized three times by TIME magazine on its annual list of Best Inventions, by Fast Company on its World Changing Ideas and World’s 50 Most Innovative Companies lists, by CNBC on its Disruptor 50 list, by Fortune on its Impact 20 list, and by MIT Technology Review as one of 15 climate tech companies to watch. For more information, visit PivotBio.com.