U.S.: lawmakers introduce a bill to rescind clean fuels production tax credit

On January 16, 2025 a Republican lawmaker introduced H.R. 549, a bill to repeal the Section 45Z clean fuel production tax credit established by the Inflation Reduction Act (IRA). The 45Z credit incentivizes the production of low-carbon fuels such as sustainable aviation fuel (SAF), renewable diesel, ethanol, renewable natural gas (RNG) and biodiesel based on life cycle greenhouse gas (GHG) reductions.

The bill aligns with the Trump administration’s broader effort to implement budget cuts by reducing government spending on clean energy incentives. However, biofuel policy is seen as a less likely target for repeal than other climate measures. Some Republican representatives have indicated a willingness to amend rather