Treasury spokesman Michael Martinez said the U.S. Treasury plans to issue guidance on the 45Z tax credit for renewable and sustainable aviation fuels before the current administration ends. This will enable eligible producers to claim credits in 2025. Martinez dismissed earlier reports suggesting delays.

Renewable Fuels Association’s Troy Bredenkamp welcomed the update. He noted that while complete regulations may not be finalized by the next administration’s Inauguration Day, detailed guidance will help producers assess eligibility and claim appropriate credit values.

The Inflation Reduction Act established the 45Z credits, offering up to $1 per gallon for transportation fuel and $1.75 per gallon for sustainable aviation fuel.

Read more on the status of the 45Z tax credits here.