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Group calls for swift guidance on 45Z clean fuels tax credit

A group that includes biofuel, agriculture, and transportation stakeholders is urging the Treasury Department to quickly finalize guidance on the 45Z tax credit.

Kurt Kovarik with Clean Fuels Alliance America says the credit encompasses all fuels and will go into effect January 1st.

“On-road, off-road, aviation, etc. So it effects all fuels that are being produced today.”

He tells Brownfield biofuels like biodiesel and ethanol could gain value based on how 45Z is designed.

“But we have no idea what the rules of the road are. So this effort is essentially to demonstrate to the Treasury Department that (they) can’t wait until January 1st, 2025 to put out guidance.”

Kovarik says any extended delays could disrupt project timelines, impede capital flows, and threaten existing production and demand for low-carbon renewable fuels.

Others joining Clean Fuels Alliance America in signing the letter include Growth Energy, the Renewable Fuels Association, American Soybean Association, National Corn Growers Association, National Oilseed Processors Association, Airlines for America, Association of Equipment Manufacturers, and SAF Coalition.

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