U.S.: government updates rules for accessing the Clean Fuels Production Credit

On May 22, 2025, the U.S. House of Representatives passed H.R. 1 bill, also referred to as the “One Big Beautiful Bill Act.” The bill includes several amendments to the 45Z Clean Fuel Production Tax Credit, originally established under the Inflation Reduction Act to support the production and consumption of transportation fuels with lower lifecycle greenhouse gas (GHG) emissions.

The 45Z tax credit currently provides up to USD 1.00 per gallon for non-aviation fuels and up to USD 1.75 per gallon for sustainable aviation fuel (SAF). It was originally authorized for tax years 2025 through 2027.

The H.R. 1 bill proposes the following changes to Section 45Z: