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HR 549119th CongressIn Committee
To amend the Internal Revenue Code of 1986 to repeal the clean fuel production credit.
Introduced: Jan 16, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs
This bill would repeal the Clean Fuel Production Credit by striking Section 45Z of the Internal Revenue Code. The repeal would apply to taxable years beginning after December 31, 2024 (i.e., starting with 2025). In short, producers would no longer be able to claim the Clean Fuel Production Credit for qualifying clean fuels produced in years after 2024. The bill was introduced in the House by Representative Van Duyne and referred to the Ways and Means Committee.
Key Points
- 1Repeal of the credit: The bill eliminates the Clean Fuel Production Credit (26 U.S.C. 45Z) by striking the section and its entry in the table of sections.
- 2Effective date: The repeal takes effect for taxable years beginning after December 31, 2024 (starting with 2025).
- 3Scope of change: There is no replacement or alternative credit provided in the bill; it simply removes the existing credit.
- 4Legislative vehicle: Introduced in the U.S. House on January 16, 2025, sponsored by Rep. Van Duyne and referred to the Committee on Ways and Means.
- 5Administrative implications: Taxpayers eligible for the credit in past years would remain governed by prior law for those years, but cannot claim the credit for 2025 and later years.
Impact Areas
Primary group/area affected: Clean fuel producers and related entities that would have claimed the Section 45Z credit; the repeal removes a supporting subsidy for those activities.Secondary group/area affected: Investors, lenders, and project developers funding clean fuel production projects that relied on the credit as part of financing or return-on-investment assumptions.Additional impacts: Potential effects on the economics of clean fuel projects, investment decisions, and market incentives for clean energy; a reduction in anticipated government subsidies for clean fuels; administrative changes for taxpayers and the IRS in year 2025 and beyond as the credit is no longer claimed.
Generated by gpt-5-nano on Nov 1, 2025