On July 3, Congress extended the §45Z credit through 2029, while also extending the ability of taxpayers to transfer the credit for cash. While this extension is effective immediately, other changes and technical clarifications require formal rulemaking from Treasury. Beginning in September 2025, SAF will no longer receive a special rate; it will receive a maximum of $1 on a level basis with other fuels. Beginning in 2026, the credit is only available for fuels produced with North American feedstocks. Carbon intensity scores for the credit will no longer include ILUC.
Unfortunately, Treasury and the White House recently signaled -- in the Regulatory Agenda -- that they don't plan to propose the rules for the tax credit until May 2026. Without rules in place, biodiesel producers and farmers will again be unable to negotiate contracts or navigate the beneficial changes adopted by Congress.
Please write to your Representative and Senators to let them know that our industry needs immediate rules on the tax credit and policy certainty to grow production.
Please provide details about your company -- e.g., number of employees, location.
Tell your experience with the current delay in rulemaking -- e.g., delays in contracts and deliveries -- and problems with the current guidance.
Emphasize the industry's ability to grow with certainty in tax policy.