Treasury Department Proposes New Rules for Biofuel Tax Credit Program
The U.S. Treasury Department released a proposed rule for the 45Z tax credit program. The rules clarify eligibility for the one dollar per gallon incentive.
Insights:
On Feb. 3, 2026 the U.S. Treasury Department issued a proposed rule on how biofuel makers can access a $1-per-gallon tax credit for low-carbon transportation fuels, including aviation fuel. The program is referred to as 45Z, providing a significant incentive for low-carbon transportation fuels in the United States 
US. The proposed rule addresses eligibility and methodology for claiming the credit, including land-use intensity calculations and treatment of foreign-grown feedstocks.
US. The proposed rule addresses eligibility and methodology for claiming the credit, including land-use intensity calculations and treatment of foreign-grown feedstocks.
