Clean Fuel Production Credit (45Z)

September 18, 2025

Expiration date: December 31, 2029

Production Tax Credit

Description: Provides a tax credit for domestic production of clean transportation fuels, including sustainable aviation fuels.

Recipients: Registered producers in the United States. Fuels with less than 50 kilograms of carbon dioxide equivalent per million British thermal units (CO2e per mmBTU) qualify as clean fuels eligible for credits.

Amount: $0.20 – $1.00 per gallon

Qualifications: 

  • Starting in 2026, the credit is only available for fuels derived from feedstocks produced in the United States, Mexico, or Canada. 
  • Fuels must produce less than 50 kilograms of carbon dioxide per unit of energy (about half of traditional petroleum products) as measured by the GREET Model.

More information: Clean Fuels Production Tax Credit – IRS