Clean Fuels welcomes opportunity to clarify 45Z clean fuel production credit rules

Clean Fuels Alliance America submitted comments April 6 on behalf of biodiesel, renewable diesel and sustainable aviation fuel (SAF) producers on the U.S. Department of the Treasury’s proposed rule for the 45Z clean fuel production credit.

Clean Fuels expressed appreciation for the treasury department’s responsiveness to industry input on the January 2025 notice of intent to propose rules and urged the agency to provide additional certainty with timely final rules.

“The proposed regulations accurately respond to taxpayer comments on the prior guidance and provide additional certainty for the industry,” Clean Fuels wrote.

“Clean Fuels and its members request additional clarity in some areas,” the organization stated.

Kurt Kovarik, Clean Fuels’ vice president of federal affairs, added, “Producers greatly appreciate the clarifications and reliance clauses that Treasury provided in this proposed rule. They are grateful that Congress adopted additional changes to the 45Z credit through the One Big Beautiful Bill. But the 45Z tax credit came into effect in January 2025 without sufficient industry guidance. Producers are asking for certainty that Treasury’s new proposal applies to sales in 2025. Increased certainty will help achieve Congress’ goals of producing more domestic energy and supporting farmers with domestic market opportunities.”

A copy of the comments is available at cleanfuels.org.