Registration delays are adding to uncertainty over new Clean Fuel Production Credit
Today, Clean Fuels Alliance America thanks Reps. Nikki Budzinski (D-IL) and Mike Carey (R-OH) for writing to IRS Commissioner Danny Werfel and urging the agency “to ensure that taxpayers’ registrations under §45Z Clean Fuel Production Credit are completed before January 1, 2025.” Under the law, registered fuel producers can only claim the credit for fuels produced after the date on their registration letter from the IRS. Many producers have not received these letters.
Treasury issued guidance in May 2024 encouraging fuel producers to register by July 15 to give the IRS sufficient time to process applications and issue the registration letters by January 1, when the credit becomes available.
“These delays are creating confusion in the marketplace and stand to have a significant negative economic impact on clean fuel producers, transportation fleets, fuel marketers, farmers and other economic sectors,” the Representatives write. “We urge IRS to complete these registrations as soon as possible, and to ensure that U.S. producers who have initiated the registration process in a timely manner are found to be eligible to generate the credit beginning on January 1, 2025.”
A copy of the letter from Reps. Budzinski and Carey is available on cleanfuels.org.
