WASHINGTON, D.C. — The Internal Revenue Service and the Department of the Treasury on Tuesday unveiled proposed regulations reshaping a key clean energy tax incentive, while also urging taxpayers to take advantage of expanded online tools designed to simplify filing and protect against fraud.
The proposed rules spell out how domestic producers of clean transportation fuel can qualify for and calculate the clean fuel production credit under the One, Big, Beautiful Bill, legislation signed into law under the Trump administration that overhauled what is commonly known as the 45Z credit. The credit applies to clean transportation fuel produced in the United States after December 31, 2024, and sold by December 31, 2029.
To claim the credit, producers must be registered with the IRS at the time of production using Form 637, Application for Registration (For Certain Excise Tax Activities), available at https://www.irs.gov/pub/irs-pdf/f637.pdf.
Treasury officials said the proposed regulations are intended to provide clarity on emissions rates, certification standards, and registration requirements, addressing concerns raised by industry stakeholders and offering greater certainty for businesses planning long-term investments.
The guidance also implements a series of changes made by the One, Big, Beautiful Bill. Among them, the law extends the credit through 2029, limits eligible feedstocks to those grown or produced in the United States, Mexico, or Canada, and adds restrictions tied to prohibited foreign entities. It also broadens how fuel sales through related intermediaries are treated, eliminates a special rate for sustainable aviation fuel, and introduces anti-abuse provisions aimed at preventing double crediting.
Additional changes prohibit negative emissions rates except for fuels derived from animal manure, require feedstock-specific emissions calculations for manure-based fuels, and exclude indirect land use changes from emissions rate determinations.
Treasury and the IRS are inviting public comment on the proposed regulations and have scheduled a public hearing. Comments can be submitted through the Federal e-Rulemaking Portal at https://www.regulations.gov under “IRS” and docket number “REG-121244-23.” Written submissions may also be mailed to the IRS at its Washington address listed in the proposal. More information on the law’s provisions is available on IRS.gov.
In a separate announcement issued the same day, the IRS encouraged taxpayers to create an IRS Individual Online Account, describing it as a secure way to access tax information and reduce the risk of identity theft and fraud.
The online account allows users to view key return information, check refund and amended return status, request and retrieve an identity protection PIN, access transcripts, manage payments and payment plans, and receive more than 200 types of digital IRS notices. Users can also approve power of attorney requests, adjust language preferences, and request alternative media.
The IRS said that in early 2025 it expanded the service to allow taxpayers to view and download certain tax documents online, including Forms W-2, 1095-A, and several common 1099 forms. The documents, filed by employers, financial institutions, government agencies, and other payers, are currently available for tax years 2023 through 2025 under the Records and Status tab of the online account.
Officials said the combined initiatives are intended to modernize tax administration while supporting clean energy production and giving taxpayers faster, more secure access to their financial information.
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