Extension and Modification of Clean Fuel Production Credit
Section 70521 · Sec. 70521 ·
What this chapter is about
This part runs a clean fuel credit to the end of 2029. The feedstock must be grown in North America. Emissions rates may not go below zero, except for animal manure. Firms tied to certain foreign governments are shut out.
“such fuel is exclusively derived from a feedstock which was produced or grown in the United States, Mexico, or Canada.”
The section adds a new clause (iii) to section 45Z(f)(1)(A) of the Internal Revenue Code of 1986 requiring the fuel to be derived only from a feedstock produced or grown in the United States, Mexico or Canada. That change applies to transportation fuel produced after December 31, 2025.
What the document actually says
“such fuel is exclusively derived from a feedstock which was produced or grown in the United States, Mexico, or Canada.”
That sentence, in plain words
The fuel must come only from a named feedstock. It must be grown or made in the United States, Mexico or Canada.
What this is about
Any other source rules the fuel out. The word exclusively means no mixing. The change reaches fuel made after 2025.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “may not”Who acts: Secretary of the TreasuryHow: statuteSec. 70521 in the PDF
What the document says
“For purposes of this section, the emissions rate for a transportation fuel may not be less than zero.”
The section adds a new subparagraph (E) to section 45Z(b)(1) of the Internal Revenue Code of 1986 barring an emissions rate below zero, and rewrites subparagraph (C) so the Secretary may round rates to the nearest multiple of 5 kilograms of carbon dioxide equivalent per million British thermal units. The change applies to rates published for fuel produced after December 31, 2025.
What the document actually says
“For purposes of this section, the emissions rate for a transportation fuel may not be less than zero.”
That sentence, in plain words
The rate for a transport fuel may not go below zero. Zero is the floor.
What this is about
A rate below zero would mean the fuel takes carbon out. The Secretary may also round rates. Rounding is to the nearest five units.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70521 in the PDF
What the document says
“the emissions rate shall be adjusted as necessary to exclude any emissions attributed to indirect land use change.”
The section adds new clauses (iv) and (v) to section 45Z(b)(1)(B) of the Internal Revenue Code of 1986 requiring the emissions rate to be adjusted to leave out emissions attributed to indirect land use change, based on regulations or methods the Secretary sets, and requiring a distinct rate for fuel derived from animal manure based on the specific feedstock such as dairy, swine or poultry manure, which may be below zero despite the general bar. The change applies to rates published for fuel produced after December 31, 2025.
What the document actually says
“the emissions rate shall be adjusted as necessary to exclude any emissions attributed to indirect land use change.”
That sentence, in plain words
The rate must leave out one kind of emission. That is emission tied to indirect land use change.
What this is about
Fuel from animal manure gets its own rate. That rate turns on the kind of manure. It alone may fall below zero.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“Section 45Z(g) is amended by striking "December 31, 2027" and inserting "December 31, 2029".”
The section strikes December 31, 2027 and inserts December 31, 2029 in section 45Z(g) of the Internal Revenue Code of 1986.
What the document actually says
“Section 45Z(g) is amended by striking "December 31, 2027" and inserting "December 31, 2029".”
That sentence, in plain words
One date is taken out of a tax rule. It was December 31, 2027. The new date is December 31, 2029.
What this is about
That gives the credit two more years. The tax code is not indexed here. Only the date change is recorded.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70521 in the PDF
What the document says
“is not produced from a fuel for which a credit under this section is allowable.”
The section adds a new clause (iv) to section 45Z(d)(5)(A) of the Internal Revenue Code of 1986 so that fuel produced from a fuel that already qualifies for the credit does not itself qualify, and requires the Secretary to issue regulations or guidance to carry that out. It also lets the Secretary set further related person rules for sales to unrelated persons.
What the document actually says
“is not produced from a fuel for which a credit under this section is allowable.”
That sentence, in plain words
The fuel must not be made from fuel that already draws this credit.
What this is about
That stops the same fuel counting twice. The Secretary must write rules on it. Further rules may cover related sellers.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“the term `sustainable aviation fuel' means liquid fuel, the portion of which is not kerosene, which is sold for use in an aircraft and which--”
The section rewrites section 45Z(a)(3) of the Internal Revenue Code of 1986 so that sustainable aviation fuel means liquid fuel, the part of which is not kerosene, sold for use in an aircraft that meets ASTM International Standard D7566 or the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, and is not derived from palm fatty acid distillates or petroleum. It also strikes the special rates for that fuel, bars the section 6426(k) credit for a gallon on which the section 45Z credit is allowable, and ends the section 6426(k) credit for any sale or use after September 30, 2025.
What the document actually says
“the term `sustainable aviation fuel' means liquid fuel, the portion of which is not kerosene, which is sold for use in an aircraft and which--”
That sentence, in plain words
The term covers liquid fuel sold for use in a plane. The part that is kerosene does not count. The tests that follow narrow it further.
What this is about
The fuel must meet a named industry standard. It may not come from palm fatty acids or oil. A separate credit for it ends after September 30, 2025.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“The credit determined under this paragraph with respect to any gallon of fuel shall be in addition to any credit determined under section 45Z with respect to such gallon of fuel.”
The section amends section 40A of the Internal Revenue Code of 1986 by striking 10 cents and inserting 20 cents, by requiring production to comply with the North American feedstock rule, by providing that the credit is on top of any clean fuel production credit for the same gallon, and by extending the small agri-biodiesel producer credit to any sale or use after December 31, 2026. It also adds the credit to the list of transferable credits in section 6418(f)(1)(A). The changes apply to fuel sold or used after June 30, 2025.
What the document actually says
“The credit determined under this paragraph with respect to any gallon of fuel shall be in addition to any credit determined under section 45Z with respect to such gallon of fuel.”
That sentence, in plain words
This credit comes on top of the other one. Both may be claimed for the same gallon.
What this is about
The rate goes from 10 cents to 20 cents. The fuel must meet the North American feedstock rule. The credit may also be sold on.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70521 in the PDF
What the document says
“No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).”
The section adds a new paragraph (8) to section 45Z(f) of the Internal Revenue Code of 1986 barring the credit for a taxable year beginning after enactment where the taxpayer is a specified foreign entity, and for a taxable year beginning more than two years after enactment where the taxpayer is a foreign-influenced entity as defined in section 7701(a)(51)(D) read without clause (i)(II). The change applies to taxable years beginning after enactment.
What the document actually says
“No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).”
That sentence, in plain words
No credit is given for a tax year that starts after this law. That holds if the taxpayer is a named foreign body.
What this is about
A second bar covers a body under foreign sway. That one starts two years later. Both terms come from the tax code.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Provide for reconciliation pursuant to title II of H. Con. Res. 14, Public Law 119-21, sec. 70521, 139 Stat. 276 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“Extension and Modification of Clean Fuel Production Credit,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70521. Read the Mandate, https://readthemandate.org/pl-119-21/section-70521/ (retrieved August 26, 2026).
Cite the document when the claim is about what the document says. Cite this page when the indexing, the wording or the record of what has happened is what is being relied on.
What This Page Covers, and What It Leaves Out
Each distinct thing the section does: require a North American feedstock, bar a negative emissions rate and allow rounding, exclude indirect land use change and set distinct rates for animal manure, extend the credit to the end of 2029, prevent a double credit, widen the related person rules, coordinate with and end the sustainable aviation fuel credit and redefine that fuel, fix the registration cross reference, extend and change the small agri-biodiesel producer credit, and bar the credit for prohibited foreign entities.
The punctuation and cross reference edits that carry the new clauses into the surrounding lists, and the several separate effective date paragraphs, which are carried in summaries.
The section works by amending sections 40A, 45Z, 6418 and 6426 of the Internal Revenue Code of 1986 and section 13704(b)(5) of Public Law 117-169, none of which is indexed here.
