NATSO, SIGMA, NACS urge Yellen to ‘swiftly’ issue 45Z credit guidance

Source: By OPIS • Posted: Monday, May 20, 2024

A trio of industry trade associations — NATSO, SIGMA and NACS — urged Treasury Secretary Janet Yellen in a Thursday letter to swiftly and effectively implement guidance on a tax credit aimed at bolstering the production of renewable fuels. The groups — which represent fuel marketers, chain retailers, truck stops, travel plaza operators and convenience stores — said they remain concerned over the “lack of progress to date” in the issuance of guidance for the Clean Fuels Production Tax Credit, otherwise known as 45Z. The credit, which was offered through the Inflation Reduction Act (IRA), will be rewarded to transportation fuels that hold a carbon intensity (CI) of no more than 50kg of CO2/MMBtu. Once fuels chart below that score, any further reductions will yield a credit based on variable carbon intensity ranging from 35cts/gal to $1.75/gal for blends of sustainable aviation fuel, and 20cts/gal to $1/gal for all other fuel blends. After implementation on Jan. 1, 2025, the credit will be offered for three years.

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