Biofuels Notch Win With IRS Proposal, Await Further Guidance

The IRS delivered a win to the biofuels industry with a proposal reflecting the GOP expansion of a production tax credit, though businesses are still seeking more guidance on how to calculate the credit value.

The proposed regulations Tuesday to implement the Section 45Z clean fuel production credit revised a key provision from previous January 2025 guidance that fuel producers said could severely limit the number of taxpayers eligible.

Though the rules aren’t final, fuel producers have a new layer of certainty after years of seeking guidance, which will likely spur investments, biofuel groups said. The ...