The IRS and Treasury recently released proposed regulations on the clean fuel production credit under the One Big Beautiful Bill Act.
Section 45Z of the tax code provides a clean fuel production credit, enacted as part of the Inflation Reduction Act, the tax-and-climate law signed by President Joe Biden in 2022.
The credit replaced prior renewable fuel incentives with a technology‑neutral credit aimed at incentivizing domestic production of lower carbon alternatives to petroleum‑based fuels.
The clean fuel production credit was extended and revamped in President Donald Trump’s OBBBA last year. Read more.