Sen. Grassley questions treasury nominees on need for timely 45Z guidance, implementation

Sen. Chuck Grassley, R-Iowa, a senior member and former chairman of the Senate finance committee, questioned President Donald Trump’s nominee for chief counsel of the Internal Revenue Service, Donald Korb, at a nominations hearing Sept. 10.

Among other topics, Grassley questioned Korb and Jonathan Greenstein, the nominee for deputy undersecretary of the treasury department, about the administration’s timeline for implementation of the clean fuels production credit under section 45Z.

In his response, Korb committed to working closely with the IRS Office of Tax Policy to ensure timely guidance is provided on all issues, including the clean fuels production credit.

“The reconciliation bill made several modifications to the clean fuels production credit under 45Z that will take effect at the start of next year,” Grassley said. “Implementing this credit properly and quickly is important for the biofuels industry and its participants, and I want to emphasize especially farmers. Recently, the Office of Management and Budget put out a regulatory agenda that suggests regulations won’t be implemented until May of 2026. This would be unacceptable.”

Grassley pointed out that, while modifications to the credit won’t go into effect until next year, it has been in effect since the start of this year.

“However, the Biden administration failed to issue formal guidance implementing the credit,” he said.

“As a result, the biofuel industry is operating with great uncertainty as to the value and availability of the credit for 2025—that means the current tax year,” Grassley said.

“If confirmed, will you commit to providing stopgap guidance clarifying the taxpayer’s eligibility to file and claim the credit this year?” Grassley asked.

Korb responded, saying, “Thank you for the question, Sen. Grassley. And, as chief counsel, I will work very closely with the Office of Tax Policy in the treasury department to make sure that timely guidance is provided on all issues, such as what you’ve suggested.”

The full hearing can be viewed here.