Department of Treasury is Implementing Congresswoman Scholten’s Clean Energy Tax Credit Recommendation

WASHINGTON, D.C.—Congresswoman Hillary Scholten’s proposed changes to the Department of Treasury’s Section 48 tax credit have been incorporated into the Department’s final rule. This clarified language is a boon for clean energy producers seeking to leverage agricultural operations to establish a green economy. 

After the passage of the historic Inflation Reduction Act (IRA), a once-in-a-generation investment in our climate, Scholten noticed a shortcoming in the proposed rulemaking. To fix this, Scholten led a letter addressed to Treasury Secretary Janet Yellen urging the Department to help farmers take advantage of this lucrative tax credit under Section 48.

With West Michigan agriculture leading on biogas production, Scholten called on Treasury to fully incentivize the development and use of lower-emissions energy produced from biogas. On December 4, 2024, Treasury issued its final rule, and the language reflects Scholten’s call for proper incentives under the tax credit. 

“When it comes to policy about cleaner energy sources, there’s certainly a lot of disagreement, but there’s also lots of common ground,” said Scholten. “I came to Congress to find those areas of agreement, and my recommended language does just that. If we want to slash greenhouse gas emissions and catalyze clean energy deployment, we must ensure producers are properly incentivized. With the final rule, the opportunity to fulfill the IRA’s potential has increased exponentially. I’m so thankful to the Department of Treasury for incorporating my suggestions and finalizing a common-sense rule.”