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The U.S. Chamber of Commerce (“Chamber”) has commented on the proposed regulations for section 45Z of the Internal Revenue Code regarding clean fuel production credit. The Chamber has praised the Treasury and the IRS for their prioritization of these proposed rules and has urged them to continue working with the USDA and Department of Energy to issue final regulations that support sustainable, biobased feedstocks. The regulations propose rules for determining eligibility, emissions rates, and certification and registration requirements for businesses producing domestic clean transportation fuel from 2024 to 2029.
A Letter to the U.S. Department of the Treasury
This piece delves into a recent correspondence addressed to Mr. Kenneth J. Kies of the U.S. Department of the Treasury. Dated April 6, 2026, the letter sought to comment on the proposed regulations associated with the clean fuel production credit under section 45Z of the Internal Revenue Code[1]. These regulations, initially published in the Federal Register on February 4, 2026[2], were enacted by the Inflation Reduction Act of 2022[3] and later amended by the One Big Beautiful Bill Act[4].
An Opportunity for Businesses
The focus of section 45Z is to provide businesses an income tax credit for clean transportation fuel produced domestically after December 31, 2024, and sold before December 31, 2029[5]. The proposed regulations are designed to establish rules for determining such credits, including defining eligibility rules, emissions rates, along with certification and registration requirements.
Commendable Interagency Efforts
This letter expressed appreciation to the Department of Treasury and the Internal Revenue Service for their commitment to releasing proposed rules under section 45Z. These rules are particularly noted for reflecting initial real-world feedback from stakeholders and meeting their urgent need for guidance. The development of regulations addressing substantive and procedural questions about the section 45Z credit brings much-needed certainty to farmers, renewable fuel producers, and consumers.
Encouragement for a Broad Sustainable Approach
Further in the correspondence, the Chamber urges the Treasury and the IRS to issue final regulations that promote and support the development of an “all-of-the-above” approach to sustainable, biobased feedstocks. These include feedstocks derived from waste streams, renewable energy sources, or biomass. The Chamber was particularly interested in the efforts of Treasury and the IRS to work in close association with other agencies, such as the U.S. Department of Agriculture and the U.S. Department of Energy.
Leveraging USDA Expertise and Encouraging Distinct Emissions Rates
The Chamber further elaborated on the need to leverage USDA expertise on feedstock carbon intensity. It also highlighted the importance of implementing directives from the One Big Beautiful Bill Act, which emphasizes the creation of distinct emissions rates. These emissions rates are crucial for determining the section 45Z credits for taxpayers.
The letter ends on a note of gratitude as the Chamber appreciates the opportunity to comment on the proposed section 45Z clean fuel production credit regulations. The Chamber also expressed willingness to engage in further discussions and provide additional information to the Treasury and IRS to finalize these regulations.
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