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Treasury and IRS issue proposed regulations on the 45Z clean fuel production credit

Proposed regulations address the clean fuel production credit, including feedstock CI treatment and credit transfer mechanics. Comments are open.

Proposed Rule
Published July 1, 2026Effective TBD

Treasury and the IRS have issued proposed regulations addressing the section 45Z clean fuel production credit. The proposal covers feedstock carbon intensity treatment and the mechanics of credit transfer.

Status

These are proposed regulations, not final. Nothing in a proposed rule is binding, and the text can change between proposal and final publication. The comment period is open.

Why the distinction matters

Marketing material that describes 45Z requirements as settled is describing a proposed rule as though it were final. A farmer evaluating an enrollment agreement should know which of the two they are being shown.

What to do next

See 45Z for farmers for the current state of the credit, and 45Z farmer programs for how program terms differ from rule requirements.

By FDCIC EditorialReviewed July 1, 2026Status: Published