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45Z Tax Credit Registration: Important Deadlines and IRS Guidance (2024)

On May 31, 2024, the IRS and US Treasury issued guidance on registration requirements for the Clean Fuels Production Tax Credit (45Z), emphasizing the need for timely registration by July 15, 2024, to avoid delays. Producers must obtain an approved registration letter before claiming the tax credit, and only fuel produced and sold post-approval will…

Eric Dinger
2 minutes
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Issued by the IRS and US Treasury on May 31, 2024

The IRS and US Treasury have issued guidance on registration requirements for the Clean Fuels Production Tax Credit (45Z). The key points are as follows:

Important Deadlines:

  • Registrations submitted after July 15, 2024, may face delays.
  • Although there is no guarantee that registrations submitted before July 15, 2024, will be approved by January 1, 2025, this is the intended timeline.

Immediate Action Needed:

  • Eligible producers must obtain an approved registration letter from the IRS to claim the 45Z tax credit.
  • Only fuel gallons produced and sold after receiving registration approval will be eligible for the 45Z credit.
  • Fuel gallons produced and sold after December 31, 2024, may be eligible, provided the registration is approved.

How to Submit Registration:

  • File Form 637, Application for Registration for Certain Excise Tax Activities.
  • Use the following codes: CN (non-SAF) and CA (SAF).
  • Provide detailed information for each non-SAF production facility, including:
  • Types and volumes of non-SAF transportation fuels produced.
  • Feedstocks and their countries of origin.
  • Locations and descriptions of production facilities.
  • Annual production capacities and operational status of facilities.
  • Names and addresses of agents or brokers.
  • Business entities involved in buying, selling, trading, or transporting fuels.
  • Annual volumes of fuel transactions.
  • Applicable ASTM or SAE standards.

IRS Registration Conditions:

  • The IRS will register an applicant with Activity Letter “CN” if:
  • The applicant is engaged or likely to become engaged in producing eligible non-SAF transportation fuel, AND
  • The applicant and any related persons have a satisfactory tax compliance history.

Eligible Feedstocks:

  • Appendix A of the IRS notice lists feedstocks that could qualify for the 45Z tax credit. Common feedstocks for non-SAF ethanol include corn, grain sorghum, and wheat.

Further Information:

  • Refer to the full Appendix A in the IRS notice: IRS Notice 24-49.
  • For questions regarding eligibility or requirements, contact your crop advisor.

Stay Updated

Remember to visit 45z.org regularly for the latest information on the 45Z tax program and related topics in agriculture and biofuels.

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