Delayed Tax Credit Rules Stall Renewable Fuel Investment Deals

Renewable fuel producers say the lack of rules for a new clean-fuel tax credit is stifling demand to the point of threatening plant shutdowns and delaying climate-friendly investments.

Trade associations and lawmakers have pleaded with the Treasury Department to release the rules for the 45Z clean fuel production credit, which bases the value of the tax breaks on a fuel’s carbon intensity score, rather than a specific type of fuel. The rules will include the different factors producers should consider when calculating carbon intensity.

Fuel producers say their customers are waiting on purchases for next year until the value of ...