The Clean Fuel Production Credit is a newly established tax credit for clean fuel production, available beginning January 1, 2025. The income tax credit is for the domestic production of clean transportation fuel, which is divided into two broad categories:
- sustainable aviation fuel (SAF) and
- non-SAF transportation fuel.
A taxpayer cannot claim a Clean Fuel Production Credit unless the taxpayer is registered as a producer of clean fuel at the time of production.
The credit is equal to the product of:
- the applicable amount per gallon (or gallon equivalent) for any transportation fuel that is produced by the taxpayer at a qualified facility during the taxable year sold by the taxpayer in a qualifying sale and
- the emissions factor for such fuel as determined under the Code.
How to claim the credit
Taxpayers will first need to register using Form 637, Application for Registration (For Certain Excise Tax Activities) under Activity Letter “CN” (producer of non-SAF transportation fuel) or Activity Letter “CA” (producer of SAF), or both, as appropriate.
News releases
IR-2024-184, Treasury, IRS issue frequently asked questions regarding registration for the Clean Fuel Production Credit, July 10, 2024
IR-2024-153, Treasury, IRS issue guidance on Clean Fuel Production Credit, May 31, 2024
Law and guidance
Notice 2025-10, Section 45Z Clean Fuel Production Credit; Request for Public Comments PDF
Notice 2025-11, Section 45Z Clean Fuel Production Credit; Emissions Rates; Request for Comments PDF
Notice 2024-49, Section 45Z Clean Fuel and Production Credit; Registration
Forms and publications
About Form 637, Application for Registration (For Certain Excise Tax Activities)