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FINWIRES

IRS Sets May Date for Public Hearing on Proposed 45Z Tax Credit Rules

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-- The Internal Revenue Service on Monday said a public hearing will take place on proposed rules for 45Z clean fuel production credits.

The hearing, set for May 27-29 in Washington, DC, will determine clean fuel production credits, including credit eligibility rules, emissions rates, and certification and registration requirements.

The credit was authorized by the 2022 Inflation Reduction Act and amended by last year's One Big Beautiful Bill Act.

In July 2025, the One Big Beautiful Bill Act extended the tax credit's duration and included feedstocks grown in Canada and Mexico.

The proposed regulations would affect domestic producers of clean transportation fuel, taxpayers that may claim a credit for a related producer's fuel, and excise tax registrants, according to the Treasury Department's filing.

The Renewable Fuels Association graded the proposals favorably for addressing some of the previous confusion about what constitutes a "qualified sale" and for removing indirect land-use change emissions from the carbon-intensity scoring framework.

The RFA stated in February that ethanol producers are anxiously awaiting a revised version of the 45ZCF-GREET model, which will shed light on and provide clearer direction on several critical issues.

In addition, questions remain regarding the quantification of emissions from low-carbon feedstock production at the farm level, the implementation of prohibitions on foreign feedstock, and provisions related to the use of energy attribute credits.

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