Publication enables taxpayers to get full value from the Clean Fuel Production Credit in current tax year |
| WASHINGTON, DC – Today, Clean Fuels Alliance America welcomes the Department of Energy’s posting of the latest version of the 45ZCF-GREET model. The model includes changes to the 45Z Clean Fuel Production Credit signed into law in July 2025 that became effective at the start of this year, including deduction of Indirect Land Use Change (ILUC) scores and ineligibility for fuels made from feedstocks sourced outside the United States, Mexico and Canada. Taxpayers can now use this up-to-date model to calculate and monetize tax credits for fuels produced during their current taxable year.
Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs, stated, “We appreciate the Department of Energy and Argonne National Labs working together to provide this timely update to the 45ZCF-GREET model. Biodiesel, renewable diesel, and SAF producers are grateful that Congress adopted beneficial changes to the 45Z credit last July through the One Big Beautiful Bill. They now have certainty that those changes can be claimed for their current tax year, which for some end as early as this summer.
“This increased certainty will help our industry achieve the administration’s goals of generating more domestic energy and creating new domestic market opportunities for farmers – both of which are critical right now.”
On May 28, Kovarik testified at the IRS’ public hearing on the 45Z Credit, where he highlighted the industry’s need for the updated 45ZCF-GREET model. Clean Fuels emphasized the need for taxpayer certainty in April comments to Treasury on the proposed rule and in a January letter to President Trump.
The model updates include improved carbon scoring data for inputs like natural gas that were published in the R&D GREET model in December. The updated model provides calculations for fuels produced in both 2025 and 2026, reflecting Congress’ changes that took effect at the start of this year. |
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