The new Clean Fuel Production Credit (§45Z) becomes effective on Jan. 1, 2025. Unfortunately, the U.S. Treasury and IRS have not provided guidance or rules that will enable companies to calculate the value of the credit. Biofuel producers are unable to negotiate feedstock or fuel offtake contracts for 2025 without knowing that value.
In May 2024, more than two dozen trade associations wrote Treasury to highlight the urgent need for timely guidance. The biodiesel and renewable diesel industry must have guidance on the transition from the traditional blender credit to the new producer credit.
Members of both the U.S. House and Senate are urging Treasury to act quickly. They are also making clear that refiners who co-process renewable fats and oils with petroleum do not qualify for the credit.
Please write your Representative and Senators to let them know that our industry needs immediate guidance on calculating the tax credit using the GREET model.
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