February 3, 2026
RIN prices continued to climb after the U.S. Treasury Department and IRS released the long-awaited proposed regulations for the Clean Fuel Production Credit (commonly referred to as the 45Z tax credit).
While the 45Z credit took effect on January 1, 2025, IRS had only issued interim guidance for it. This lack of regulatory clarity has contributed to delays and disruptions in biodiesel and renewable diesel production across the United States. With proposed regulations now available, renewable fuel producers eligible for the credit have gained some insights about the direction being taken by the Trump Administration.
The February 3 proposed regulations address both (1) the application of the credit for fuel produced in 2025, as enacted under the Biden Administration’s Inflation Reduction Act, and (2) the application of the credit beginning January 1, 2026, reflecting statutory revisions enacted under the Trump Administration’s “One Big Beautiful Bill.”
Treasury and IRS are accepting comments on the proposed regulations for 60 days following publication in the Federal Register. A public hearing is scheduled for May 28, 2026, at 10:00 a.m. Eastern Time. Final 45Z regulations are expected late Spring/early Summer after Treasury and IRS consideration of public comments.
Additional information about the proposed regulations, including information on submitting comments or participating in the public hearing, can be found here.