Biofuel Groups Push IRS for New Model to Calculate Tax Credit

Biofuel and farm groups are asking the Treasury Department and IRS to update the model companies use to calculate whether they qualify for the clean fuel production tax credit.

Agency lawyers are listening to proposals by more than 70 groups for modifying the Section 45Z tax credit proposed rules released in February over a three-day hearing. The credit aims to encourage biofuels produced with low greenhouse gas emissions, a rare break created by Democrats and expanded in the GOP’s 2025 tax law. Treasury and IRS will finalize the rules after considering all the comments.

The number of commenters shows the ...