The IRS on July 21 published a notice announcing the 2025 calendar-year inflation adjustment factor for the Section 45Z clen fuel production credit. The resulting adjustment boosts maximum the value of the credit by approximately 6%.&nbsp;The law establishing the 45Z credit includes language implementing an inflation adjustment for years beginning after 2024. The value of the credit, currently set at up to $1 per gallon for non-aviation transportation fuels and up to $1.75 per gallon for sustainable aviation fuel (SAF), is to be adjusted using the inflation adjustment factor, as determined by the IRS. While the One Big Beautiful Bill, signed by President Donald Trump on July 4, included language capping the value of 45Z at $1 per gallon for all fuels, including SAF, that change does not take effect until Jan. 1, 2026.For transportation fuel sold in calendar year 2025, the IRS has calculated the inflation adjustment factor to be 1.0611. As a result, the taxpayers can claim up to $1.06 per gallon for eligible non-SAF fuels and up to $1.86 per gallon for eligible SAF.&nbsp;A full copy of the notice is available on the IRS <a href="https://www.irs.gov/irb/2025-30_IRB">website</a>.&nbsp;

2019/09/IRSLogo_15676344556209_largethumb.jpg

2019/09/IRSLogo_15676344556209_thumb.jpg

2019/09/IRSLogo_15676344556209.jpg

The IRS on July 21 published a notice announcing the 2025 calendar-year inflation adjustment factor for the Section 45Z clen fuel production credit. The resulting adjustment boosts maximum the value of the credit by approximately 6%. 

IRS announces 2025 inflation adjustment factor for 45Z credit

Related Stories

Calumet: Montana Renewables SAF expansion progressing on schedule

California’s new specified source feedstock attestation requirement: A critical new compliance step for renewable fuel producers

Biofuel groups weigh in on EPA’s RFS proposal

US biofuel industry celebrates 20th anniversary of the RFS

World Biodiesel Day: MOL Group successfully completes another SAF and HVO production test

Upcoming Events

North American SAF Conference & Expo

2026 International Biomass Conference & Expo

IRS announces 2025 inflation adjustment factor for 45Z credit.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}