NATSO and SIGMA Push Treasury to Finalize 'Section 45Z' Rule for Fair Biofuel Tax Credits
Event summary
- NATSO and SIGMA urged the Treasury Department to finalize 'Section 45Z' rule to restore technology neutrality in clean fuel tax credits.
- The One Big Beautiful Bill Act eliminated a premium tax credit favoring sustainable aviation fuel over road-based biofuels.
- Previous '45Z' tax credit provided up to $1.75 per gallon for SAF but capped ground transportation fuels at $1.00.
- Retail diesel prices average nearly $6.00 per gallon amid geopolitical instability in the Middle East.
The big picture
The push for 'Section 45Z' rule finalization comes amid high diesel prices and geopolitical instability, highlighting the strategic importance of fair tax incentives for biofuels. The restoration of technology neutrality aims to level the playing field for over-the-road diesel alternatives, ensuring that taxpayer resources are directed toward the most efficient advanced fuels. This shift could significantly impact the trucking industry and consumer costs for transportation and heating.
What we're watching
- Regulatory Execution
- Whether the Treasury Department will finalize the '45Z' rule as Congress intended, ensuring market-driven fuel efficiency.
- Market Impact
- How the restored technology neutrality will affect the demand for biodiesel and renewable diesel, and the flow of feedstocks.
- Policy Influence
- The extent to which NATSO and SIGMA can shape the final rule to deliver meaningful relief to American consumers.
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