The National Association of Travel Plaza Operators (NATSO) and Sigma, America’s Leading Fuel Marketers, have issued a statement in response to reports that the US Department of Treasury and Internal Revenue Service may not provide guidance on implementing the Clean Fuel Production tax credit, also known as 45Z, by year end.
Without this guidance, fuel producers will struggle to utilize the 45Z credit, leading to higher fuel prices and emissions as the biodiesel industry effectively shuts down. NATSO and SIGMA argue that extending the $1.00 per gallon biodiesel blenders’ tax credit is essential to support the growth of a strong biodiesel and renewable diesel industry in the US.
The biodiesel blenders’ tax credit has been instrumental in developing this industry, driving significant growth in production. The US biodiesel and renewable diesel market expanded from approximately 100 million gallons in 2005 to around 4 billion gallons in 2023, while lowering transportation-related carbon emissions.
NATSO and SIGMA urge Congress to quickly pass a critical tax extension to ensure that fuel retailers can continue to cut carbon emissions without higher fuel prices. They also stress the importance of equal tax treatments for all biofuels and lower costs for fuels like biodiesel and renewable diesel compared to petroleum-based fuels.
Source: https://www.grainjournal.com/article/1060757/natso-sigma-statement-on-reports-that-irs-treasury-department-are-not-expected-to-issue-guidance-on-implementation-of-the-clean-fuel-production-tax-credit-in-2024