Clean Fuels thanks Reps. Budzinski, Carey for urging IRS to complete timely 45Z registrations

Clean Fuels Alliance America thanked Reps. Nikki Budzinski, D-Illinois, and Mike Carey, R-Ohio, Nov. 26 for writing to IRS Commissioner Danny Werfel and urging the agency to ensure that taxpayers’ registrations under the 45Z clean fuel production credit are completed before Jan. 1, 2025.

Under the law, registered fuel producers can only claim the credit for fuels produced after the date on their registration letter from the IRS.

Many producers have not received these letters.

Treasury issued guidance in May encouraging fuel producers to register by July 15 to give the IRS sufficient time to process applications and issue the registration letters by Jan. 1, when the credit becomes available.

“These delays are creating confusion in the marketplace and stand to have a significant negative economic impact on clean-fuel producers, transportation fleets, fuel marketers, farmers and other economic sectors,” the representatives write. “We urge IRS to complete these registrations as soon as possible, and to ensure that U.S. producers who have initiated the registration process in a timely manner are found to be eligible to generate the credit beginning on Jan. 1, 2025.”

A copy of the letter is available here.

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, the clean-fuels industry is a proven, integral part of America’s clean-energy future.

Clean Fuels Alliance America is the U.S. trade association representing the entire biodiesel, renewable diesel and sustainable aviation fuel supply chain, including producers, feedstock suppliers and fuel distributors.

Clean Fuels receives funding from a broad mix of private companies and associations, including the United Soybean Board, Nebraska Soybean Board and other state checkoff organizations.