One Big Beautiful Bill Act: Section 45Z clean fuel production credit extended and modified
15 October 2025
The Section 45Z clean fuel production credit (the "Section 45Z credit") is among the few clean energy incentives introduced by the Inflation Reduction Act of 2022 (the "IRA") that was sustained by the One Big Beautiful Bill Act (the "OBBBA"), which was signed into law by President Trump on July 4, 2025. In fact, the OBBBA extended the Section 45Z credit by an additional two years to December 31, 2029, in stark contrast to its abridgment or elimination of numerous other IRA incentives. Nevertheless, fuel producers intending to claim the Section 45Z credit should be aware that the OBBBA modified the credit in several other significant respects.
This briefing outlines those modifications.
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