U.S. Department of the Treasury Releases Guidance on Clean Fuels Production Credit

Guidance will help lower transportation costs for consumers and make America a leader in decarbonizing aviation industry and heavy transportWASHINGTON – Today, the U.S. Department of the Treasury (Treasury) and Internal Revenue Service (IRS) are releasing guidance on the Clean Fuels Production Credit (section 45Z).Section 45Z provides a tax credit for the production of transportation fuels with lifecycle greenhouse gas (GHG) emissions below certain levels. The credit is in effect in 2025 and is for sustainable aviation fuel (SAF) and non-SAF transportation fuels.Today’s guidance was informed by extensive input from stakeholders and the public as well as collaboration between Treasury, IRS, and expert agencies.