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Section 45Z Clean Fuel Production Credit — Extension and Modification (Section 70521)
Illinois — state program$0.20 or $1.00 (applicable amount for transportation fuel produced after Dec. 31, 2025); $.10 per gallon (small agri-biodiesel, fuel sold or used Jan. 1, 2025 through June 30, 2025); $.20 per gallon (small agri-biodiesel, fuel sold or used after June 30, 2025 but before Jan. 1, 2027)
Extends the Section 45Z Clean Fuel Production Credit through fuel sold before January 1, 2030, with modifications including domestic feedstock requirements, restrictions on specified and foreign-influenced entities, and updated rates for sustainable aviation fuel and small agri-biodiesel producers.
Program details
- Type
- tax-credit
- Amount
- $0.20 or $1.00 (applicable amount for transportation fuel produced after Dec. 31, 2025); $.10 per gallon (small agri-biodiesel, fuel sold or used Jan. 1, 2025 through June 30, 2025); $.20 per gallon (small agri-biodiesel, fuel sold or used after June 30, 2025 but before Jan. 1, 2027)
- Eligibility
- Producers of qualifying transportation fuel sold before Jan. 1, 2030. For fuel produced after Dec. 31, 2025, feedstock must be exclusively derived from the United States, Mexico, or Canada. Credit cannot be claimed by specified foreign entities (for taxable years beginning after July 4, 2025) or foreign-influenced entities (for taxable years beginning after July 4, 2027).
- Status
- open
- Administrator
- IRS
Source: Illinois — state program. Confirm current terms with the administering agency before applying.