Clean Fuels Production Credit (IRA 45Z)

USD 2.9 billion (estimated by the Joint Committee on Taxation) for FY2025 to FY2028. Production tax credit for fuels produced between 2025 and 2027. Eligibility: Fuels should have less than 50 gCO2-eq/mmBTU. Incentive: Sliding scale with a maximum of USD 0.2/gal for non-aviation fuels and USD 0.35/gal for aviation fuel. These are increased by 5 if producers meet prevailing wage and registered apprenticeship requirements. The incentive is inversely proportional to the emission rates

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