Biofuel Groups Seek Tax Credit Extension Amid Rules Delay

The biofuel industry is calling on lawmakers to extend a blenders tax credit since the Treasury Department hasn’t released guidance for its replacement credit that takes effect next year.

The clean fuel production credit under Section 45Z, which was part of the 2022 tax-and-climate law and bases the value of tax breaks on a fuel’s carbon intensity score, is set to replace the current biodiesel and renewable diesel blenders credit, which started in 2004. Treasury and IRS rules will explain to producers how to calculate their carbon intensity score and tax credit value. But those rules haven’t come out yet, ...