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Federal 45Z Clean Fuel Production Tax Credit

Internal Revenue Service (IRS)FED-45Z
Max per Applicant

Varies

Maximum a single org can receive

Deadline

Rolling / No deadline

Jurisdiction

United States

About This Program

Section 45Z (effective 2025) replaces the biodiesel and alternative fuel credits with a technology-neutral clean fuel production credit of up to $1.00/gallon for non-aviation fuels and $1.75/gallon for sustainable aviation fuel (SAF), based on emissions intensity.

Key Requirements & Eligibility

  • 1Fuel must be produced in the United States
  • 2Non-aviation fuel: up to $1.00/gallon for lowest-emission fuels
  • 3Sustainable aviation fuel (SAF): up to $1.75/gallon
  • 4Lifecycle emissions must be below 50 kg CO2e/MMBtu baseline
  • 5Transferable credit โ€” can be sold to third parties

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Apply or Learn More

Visit the official page to review full eligibility requirements and apply.

Official Source
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Applicable Industries

Oil & Gas TransitionClean TechnologyAgricultureAviation
Official Source