US spot prices for vegetable oils closed the week on a quiet and depressed note on Friday December 20.

The market remains in shambles due to a lack of guidance regarding the 45Z Clean Fuel Production Tax Credit (CFPC) that will go into effect on January 1, 2025. The CFPC is set to replace the $1-per-gallon Blenders’ Tax Credit (BTC) after it expires on December 31.

Hopes for a delay in the BTC’s expiration were dimmed this week when a US Congressional spending bill that contained no language pertaining to a possible extension of the BTC failed to be passed twice.

If a spending package is not approved by 11:59pm Friday, some federal services will begin shutting down, which means ongoing tax credit uncertainty for the biofuel industry.

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