Clean Fuels Alliance America submitted comments supporting Treasury’s proposed rule for the 45Z Clean Fuel Production Credit, highlighting the agency’s responsiveness to industry input and calling for timely final rules to provide greater certainty.
The 45Z tax credit, effective January 2025, supports producers of biodiesel, renewable diesel, and sustainable aviation fuel (SAF). However, Clean Fuels noted that the credit was implemented without sufficient guidance, creating uncertainty for producers.
“The proposed regulations accurately respond to taxpayer comments on the prior guidance and provide additional certainty for the industry,” the alliance stated in its comments. It also requested further clarity in certain areas to help producers navigate the credit’s requirements.
Kurt Kovarik, vice president of federal affairs for Clean Fuels, emphasized the importance of clear and timely rules. “Producers greatly appreciate the clarifications and reliance clauses that Treasury provided in this proposed rule. Increased certainty will help achieve Congress’ goals of producing more domestic energy and supporting farmers with domestic market opportunities,” he said.
The comments reflect industry support for the changes Congress made to the 45Z credit through the One Big Beautiful Bill and stress the need for the new rules to apply retroactively to sales in 2025.
