Internal Revenue Bulletin 2026-9 (PDF rendition): IRS Revenue Procedures

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

Bulletin No. 2026–9
February 23, 2026
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
REG-121244-23, page 579.
The proposed regulations would provide rules on the sec-
tion 45Z clean fuel production credit as extended and mod-
ified by the One, Big, Beautiful Bill Act of 2025. Section
45Z provides a credit for clean transportation fuel pro-
duced domestically after December 31, 2024, and sold
by December 31, 2029. The proposed regulations would
address general requirements, such as credit eligibility,
emissions rates, claim filing, and registration. The pro-
posed regulations would also amend existing elective pay,
credit transfer, and registration regulations for clarity and
consistency. The proposed regulations would affect domes-
tic fuel producers, credit claimants, and registrants.
Rev. Proc. 2026-13, page 563.
This revenue procedure provides discount factors for the
2025 accident year for use by insurance companies in
computing discounted unpaid losses under § 846 of the
Internal Revenue Code and discounted estimated salvage
recoverable under § 832.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
February 23, 2026 Bulletin No. 2026–9

Part III
26 CFR 601.601: Rules and regulations.
(Also: Part I, §§ 832, 846; 1.846-1.)
Rev. Proc. 2026-13
SECTION 1. PURPOSE
This revenue procedure provides dis-
count factors for the 2025 accident year
for use by insurance companies in com-
puting discounted unpaid losses under
§ 846 of the Internal Revenue Code
1
and
discounted estimated salvage recoverable
under § 832. This revenue procedure also
provides, for convenience, discount fac-
tors for losses incurred in the 2024 acci-
dent year and earlier accident years for use
in taxable years beginning in 2025. The
discount factors for accident years before
2025 were provided in earlier revenue
procedures. See, e.g., Rev. Proc. 2025-15,
2025-11 I.R.B. 1090. See Rev. Proc. 2023-
10, 2023-3 I.R.B. 411, for background
concerning the loss payment patterns and
application of the discount factors. This
revenue procedure also requests com-
ments relating to the composite method
described in this revenue procedure and a
2024 change by the National Association
of Insurance Commissioners (NAIC) to
Schedule P (Analysis of Losses and Loss
Expenses) of the annual statement.
SECTION 2. SCOPE
This revenue procedure applies to any
insurance company that is required to
discount unpaid losses under § 846 for a
line of business using the discount factors
published by the Secretary of the Treasury
or the Secretary’s delegate (Secretary) and
also applies to any insurance company that
is required to discount estimated salvage
recoverable under § 832.
SECTION 3. DISCOUNT FACTORS
FOR THE 2025 ACCIDENT YEAR
.01 The tables in this section 3 pres-
ent separately for each line of business
the discount factors for losses incurred in
the 2025 accident year for use by insur-
ance companies in computing discounted
unpaid losses under § 846 and estimated
salvage recoverable under § 832. The dis-
count factors presented in this section are
generally determined by using the applica-
ble interest rate for 2025 under § 846(c),
which is 3.57 percent, compounded semi-
annually. The exceptions are the discount
factors for long-tail lines of business
determined using the composite method
described in section V of Notice 88-100,
1988-2 C.B. 439. See section 3.02 of this
revenue procedure. All discount factors are
determined by assuming all loss payments
occur in the middle of the calendar year.
.02 Section V of Notice 88-100 sets
forth a composite method for comput-
ing discounted unpaid losses for accident
years that are not separately reported on
the annual statement. Tables 1 and 2 sep-
arately provide discount factors for insur-
ance companies that have elected to use the
composite method of Notice 88-100. See
Rev. Proc. 2002-74, 2002-2 C.B. 980. The
discount factors computed using the com-
posite method are unrelated to the compos-
ite discount factors referred to in § 1.846-
1(b)(1)(ii) and (4), which apply to lines of
business for which the Secretary has not
published discount factors. The composite
discount factors for use with respect to such
lines of business are labelled “Short-Tail
Composite” (in Table 1, part B) and “Long-
Tail Composite” (in Table 2, part B). The
“Miscellaneous Casualty” discount fac-
tors referenced in § 1.846-1(b)(2) are not
set forth in tables but are equivalent to the
“Short-Tail Composite” discount factors.
1
Unless otherwise specified, all “section” or “§” references are to sections of the Internal Revenue Code or the Income Tax Regulations (26 CFR part 1).
Bulletin No. 2026–9 563 February 23, 2026

Discount Factors for 2025
2025 Interest Rate (using semi-annual compounding): 3.57%
Table 1 (part A)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2025 in Short-Tail Lines of Business
Taxable Year
Beginning in
Auto Physical
DamageFidelity/Surety
Financial Guaranty/
Mortgage GuarantyInternationalOther*
2025 98.0171 94.8069 94.2020 94.9732 96.3288
2026 96.5385 96.5385 96.5385 96.5385 96.5385
Taxpayer Not Using Composite Method
Years after 2026 98.2463 98.2463 98.2463 98.2463 98.2463
Taxpayer Using the Composite Method
2027 98.2463 98.2463 98.2463 98.2463 98.2463
Years after 2027
Use composite method discount factors published for the accident year that is two years prior to the
specified taxable year.
* For the Accident and Health line of business (other than disability income or credit disability insurance), the discount
factor for taxable year 2025 is 98.2463 percent. This is also the discount factor used in later taxable years for taxpayers
not using the composite method. For taxpayers using the composite method, the discount factor for losses incurred in
2025 is the discount factor published for the Accident and Health line of business for losses incurred in the accident year
coinciding with the taxable year.
February 23, 2026 564 Bulletin No. 2026–9

Bulletin No. 2026–9 565 February 23, 2026
Table 1 (part B)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2025 in Short-Tail Lines of Business
Taxable Year
Beginning in
Reinsurance -
Nonproportional
Assumed
Financial Lines
Reinsurance -
Nonproportional
Assumed
Liability
Reinsurance -
Nonproportional
Assumed
Property
Special Property
(Fire, Allied Lines,
Inland Marine,
Earthquake,
Burglary, Theft,
Pet)Warranty
Short-Tail
Composite
202594.940693.805895.371497.055398.006996.6054
202696.538596.538596.538596.538596.538596.5385
Taxpayer Not Using Composite Method
Years after 202698.246398.246398.246398.246398.246398.2463
Taxpayer Using the Composite Method
202798.246398.246398.246398.246398.246398.2463
Years after 2027
Use composite method discount factors published for the accident year that is two years prior to the
specified taxable year.

February 23, 2026 566 Bulletin No. 2026–9
Table 2 (part A)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2025 in Long-Tail Lines of Business
Taxable Year
Beginning in
Commercial
Auto/Truck
Liability/Medical
Medical
Professional
Liability -
Claims-Made
Medical
Professional
Liability -
Occurrence
Multiple
Peril Lines
Other
Liability -
Claims-Made
Other
Liability -
Occurrence
2025 92.7912 89.9549 84.2073 94.4611 89.6344 87.9606
2026 93.5133 91.2521 86.4746 92.5690 90.7627 88.9863
2027 94.1823 91.6347 88.1348 92.6080 90.8107 89.8289
2028 94.5524 92.6662 89.7767 92.5264 91.0559 90.2447
2029 94.4332 92.4552 90.7378 92.2615 90.9686 90.6061
2030 93.8646 93.2174 91.1974 92.5637 91.0111 89.3763
2031 93.8845 92.6918 91.6531 92.6495 90.5663 89.3393
2032 94.4510 93.7328 91.4746 94.7671 92.5852 90.2206
2033 95.6118 95.3263 93.6570 95.7661 95.6185 91.4060
2034 97.8620 97.0999 95.6841 97.5155 96.3278 93.6044
Taxpayer Not Using Composite Method
2035 98.2463 98.2463 97.2501 98.2463 97.9703 95.2097
2036 98.2463 98.2463 98.2463 98.2463 98.2463 96.8131
Years after 2036 98.2463 98.2463 98.2463 98.2463 98.2463 98.2463
Taxpayer Using the Composite Method
2035 98.2463 98.2463 97.5177 98.2463 98.0050 96.3273
Years after 2035
Use composite method discount factors published for the accident year that is ten years prior to the
specified taxable year.

Bulletin No. 2026–9 567 February 23, 2026
Table 2 (part B)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2025 in Long-Tail Lines of Business
Taxable
Year Beginning in
Private
Passenger
Auto Liability/
Medical
Products
Liability -
Claims-Made
Products
Liability -
Occurrence
Workers'
Compensation
Long-Tail
Composite
2025 94.9556 86.9550 86.1793 86.7823 92.0262
2026 94.5489 88.5282 87.8134 85.0171 91.1814
2027 94.6490 88.8084 89.1375 84.3111 90.8933
2028 94.5543 87.6563 89.8227 83.7305 90.1230
2029 93.4742 89.4311 90.2047 84.0629 89.7600
2030 92.7233 91.3355 90.7591 83.3153 89.1923
2031 93.4032 93.4192 91.8587 83.9937 89.4663
2032 93.5712 93.9397 92.1985 85.7493 91.0189
2033 94.4679 95.4488 93.4239 87.4231 92.6313
2034 97.0779 97.4692 95.8540 88.5091 94.1737
Taxpayer Not Using Composite Method
2035 98.2463 98.2463 97.4244 90.0263 95.7770
2036 98.2463 98.2463 98.2463 91.5785 97.3442
2037 98.2463 98.2463 98.2463 93.1661 98.2463
2038 98.2463 98.2463 98.2463 94.7893 98.2463
2039 98.2463 98.2463 98.2463 96.4458 98.2463
2040 98.2463 98.2463 98.2463 98.1221 98.2463
Years after 2040 98.2463 98.2463 98.2463 98.2463 98.2463
Taxpayer Using the Composite Method
203598.246398.323097.620493.495096.8705
Years after 2035
Use composite method discount factors published for the accident year that is ten years prior to the
specified taxable year.

February 23, 2026 568 Bulletin No. 2026–9
SECTION 4. DISCOUNT FACTORS
FOR TAXABLE YEARS BEGINNING
IN 2025
.01 The tables in this section 4 pres-
ent separately for each line of business
discount factors for losses incurred in the
2025 accident year and earlier accident
years for use by insurance companies in
computing discounted unpaid losses under
§ 846 and estimated salvage recoverable
under § 832 in taxable years beginning in
2025.
.02 Tables 3 and 4 separately provide
discount factors for insurance compa-
nies that have elected to use the compos-
ite method of Notice 88-100. See Rev.
Proc. 2002-74. The discount factors
computed using the composite method
are unrelated to the composite discount
factors referred to in § 1.846-1(b)(1)(ii)
and (4), which apply to lines of business
for which the Secretary has not pub-
lished discount factors. The composite
discount factors for use with respect
to such lines of business are labelled
“Short-Tail Composite” (in Table 3,
part B) and “Long-Tail Composite” (in
Table 4, part B). The “Miscellaneous
Casualty” discount factors referenced
in § 1.846-1(b)(2) are not set forth in
tables but are equivalent to the “Short-
Tail Composite” discount factors.

Bulletin No. 2026–9 569 February 23, 2026
Table 3 (part A)
Discount Factors Under Section 846 (percent)
For Taxable Years Beginning in 2025
Short-Tail Lines of Business
Accident Year
Auto Physical
DamageFidelity/Surety
Financial Guaranty/
Mortgage GuarantyInternationalOther*
2025 98.0171 94.8069 94.2020 94.9732 96.3288
2024 96.9063 96.9063 96.9063 96.9063 96.9063
Taxpayer Not Using Composite Method
2023 98.5707 98.5707 98.5707 98.5707 98.5707
2022 98.6826 98.6826 98.6826 98.6826 98.6826
2021 98.5999 98.5999 98.5999 98.5999 98.5999
2020 98.4834 98.4834 98.4834 98.4834 98.4834
2019 98.4785 98.4785 98.4785 98.4785 98.4785
Years before 2019 98.5513 98.5513 98.5513 98.5513 98.5513
Taxpayer Using the Composite Method
Years before 2024 98.5707 98.5707 98.5707 98.5707 98.5707
* For the Accident and Health line of business (other than disability income or credit disability insurance), the discount
factor for taxable year 2025 is 98.2463 percent.

February 23, 2026 570 Bulletin No. 2026–9
Table 3 (part B)
Discount Factors Under Section 846 (percent)
For Taxable Years Beginning in 2025
Short-Tail Lines of Business
Accident
Year
Reinsurance -
Nonproportional
Assumed
Financial Lines
Reinsurance -
Nonproportional
Assumed
Liability
Reinsurance -
Nonproportional
Assumed
Property
Special Property
(Fire, Allied Lines,
Inland Marine,
Earthquake,
Burglary, Theft, Pet)Warranty
Short-Tail
Composite
2025 94.9406 93.8058 95.3714 97.0553 98.0069 96.6054
2024 96.9063 96.9063 96.9063 96.9063 96.9063 96.9063
Taxpayer Not Using Composite Method
2023 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707
2022 98.6826 98.6826 98.6826 98.6826 98.6826 98.6826
2021 98.5999 98.5999 98.5999 98.5999 98.5999 98.5999
2020 98.4834 98.4834 98.4834 98.4834 98.4834 98.4834
2019 98.4785 98.4785 98.4785 98.4785 98.4785 98.4785
Years before
2019 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513
Taxpayer Using the Composite Method
Years before
2024 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707

Bulletin No. 2026–9 571 February 23, 2026
Table 4 (part A)
Discount Factors Under Section 846 (percent)
For Taxable Year(s) Beginning in 2025
Long-Tail Lines of Business
Accident Year
Commercial
Auto/Truck
Liability/Medical
Medical
Professional
Liability -
Claims-Made
Medical
Professional
Liability -
Occurrence
Multiple Peril
Lines
Other
Liability -
Claims-
Made
Other
Liability -
Occurrence
2025 92.7912 89.9549 84.2073 94.4611 89.6344 87.9606
2024 94.1807 92.1360 87.8094 93.3234 91.6872 90.0762
2023 95.2185 93.1025 90.1803 93.9066 92.4061 91.5784
2022 95.8620 94.4096 92.1748 94.3016 93.1601 92.5186
2021 95.3575 93.4953 92.9976 91.6759 92.3482 90.9746
2020 94.8262 93.0034 93.2158 91.2360 92.2753 90.3502
2019 95.0988 93.9636 94.0439 90.9051 92.7450 90.3437
2018 94.9804 95.1291 94.9993 91.0177 93.8378 91.9830
2017 96.4102 96.0160 96.1220 93.5200 94.9264 92.6228
2016 98.3585 97.7503 97.7902 94.8530 96.6876 94.4974
Taxpayer Not Using the Composite Method
2015 98.5513 98.5513 98.5513 96.1895 98.0033 95.8511
2014 98.5513 98.5513 98.5513 97.5045 98.5513 97.2176
Years before
2014 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513
Taxpayer Using the Composite Method
Years before
2016 98.5513 98.5513 98.5513 96.9185 98.0920 96.7300

February 23, 2026 572 Bulletin No. 2026–9
Table 4 (part B)
Discount Factors Under Section 846 (percent)
For Taxable Year(s) Beginning in 2025
Long-Tail Lines of Business
Accident Year
Private
Passenger
Auto Liability/
Medical
Products
Liability -
Claims-Made
Products
Liability -
Occurrence
Workers'
Compensation
Long-Tail
Composite
2025 94.9556 86.9550 86.1793 86.7823 92.0262
2024 95.1115 89.6632 89.0194 86.4322 92.0595
2023 95.6012 90.7369 91.0112 86.8945 92.4617
2022 95.8576 90.5530 92.2079 87.3806 92.4240
2021 94.4178 85.5424 90.1962 83.9002 89.0997
2020 94.0255 85.8393 89.4917 82.1898 88.1551
2019 94.2553 87.2412 90.4215 82.5155 88.0992
2018 95.0550 89.0388 91.8072 84.1036 89.1661
2017 95.6473 90.2969 92.1992 84.7150 90.3858
2016 97.7282 91.5785 94.4133 86.5946 92.1457
Taxpayer Not Using the Composite Method
2015 98.5513 92.8838 95.7739 87.8065 93.4541
2014 98.5513 94.2124 97.1571 89.0414 94.7812
2013 98.5513 95.5629 98.5513 90.2995 96.1195
2012 98.5513 96.9299 98.5513 91.5813 97.4421
2011 98.5513 98.2868 98.5513 92.8867 98.5513
2010 98.5513 98.5513 98.5513 94.2154 98.5513
2009 98.5513 98.5513 98.5513 95.5661 98.5513
2008 98.5513 98.5513 98.5513 96.9334 98.5513
2007 98.5513 98.5513 98.5513 98.2913 98.5513
Years before 2007 98.5513 98.5513 98.5513 98.5513 98.5513
Taxpayer Using the Composite Method
Years before 2016 98.5513 94.7288 96.6903 91.2579 95.0968

Bulletin No. 2026–9 573 February 23, 2026
SECTION 5. REQUEST FOR
COMMENTS
.01 Effect of NAIC Change on Compos-
ite Method. Section V of Notice 88-100
sets forth a composite method for comput-
ing discounted unpaid losses for accident
years that are not separately reported on
the annual statement. Beginning in 2024,
the NAIC changed Schedule P of the
annual statement to require ten years of
data (and a “prior” row) to be reported for
all lines of business. Previously, only two
years of data were required to be reported
for some lines of business. As described in
Rev. Proc. 2025-15, the Department of the
Treasury (Treasury Department) and the
Internal Revenue Service (IRS) expect that
composite method discount factors, which
apply with respect to accident years not
separately reported on the annual state-
ment, will be of limited use to insurance
companies with respect to the lines of
business set forth in Tables 1 and 3 fol-
lowing the 2024 NAIC change. This is
because the 2024 NAIC change generally
increases the number of accident years
being separately reported on the annual
statement for these lines of business.
Nonetheless, in Rev. Proc. 2025-15, the
Treasury Department and the IRS made no
change to the determination and applica-
tion of composite method discount factors
to reflect the 2024 NAIC change to Sched-
ule P. The Treasury Department and the
IRS instead requested comments regarding
composite method discount factors with
respect to the lines of business set forth in
Tables 1 and 3 following the NAIC change.
No comments were received.
.02 Plans Regarding Composite
Method. The Treasury Department and
the IRS are making no change to the
determination and application of com-
posite method discount factors to reflect
the 2024 NAIC change to Schedule P in
this revenue procedure. Accordingly, like
Rev. Proc. 2025-15, this revenue proce-
dure provides composite method discount
factors for accident years that were sep-
arately reported on the annual statement
due to the 2024 NAIC change to Schedule
P, although section V of Notice 88-100
provides the composite method for com-
puting discounted unpaid losses for acci-
dent years that are not separately reported
on the annual statement. Beginning with
the revenue procedure providing discount
factors for use by insurance companies
in computing discounted unpaid losses
under § 846 and discounted estimated sal-
vage recoverable under § 832 for taxable
years beginning in 2026, the Treasury
Department and the IRS expect to pro-
vide composite method discount factors
only for accident years not separately
reported on the annual statement. Accord-
ingly, with respect to the lines of busi-
ness set forth in Tables 1 and 3, the Trea-
sury Department and the IRS expect to
require that, for accident years separately
reported on the annual statement, taxpay-
ers using the composite method must use
the same discount factors used by tax-
payers not using the composite method.
Consistent with prior practice, although
the annual statement does not distinguish
between cancellable accident and health
insurance and other insurance designated
as “Other,” these two groups of policies
would continue to be treated as if their
losses were reported separately. Set forth
below, for informational purposes only,
are Table 1 (parts A and B) for the 2025
accident year and Table 3 (parts A and B)
for taxable years beginning in 2025, as
they would have appeared if the proposed
approach had been required for taxable
years beginning in 2025. The composite
method discount factors set forth in these
tables were derived using the loss pay-
ment patterns previously determined for
the 2022 determination year under section
846(d)(3)(B)(i). See Rev. Proc. 2023-10
for background concerning the loss pay-
ment patterns. The anticipated changes
to the discount factors used by insurance
companies using the composite method to
compute discounted unpaid losses under
§ 846 and discounted estimated salvage
recoverable under § 832 are expected to
change the proper time for the inclusion
of the item in income or the taking of the
item as a deduction. Accordingly, affected
insurance companies are expected to have
a change in method of accounting subject
to § 446(e) and § 1.446-1. The Treasury
Department and the IRS anticipate pro-
viding simplified procedures for insur-
ance companies to change their method
of accounting to use such factors in their
first taxable year beginning after Decem-
ber 31, 2025. For example, the Treasury
Department and the IRS are considering
implementing the change on a cut-off
basis, providing automatic change request
procedures, and limiting the information
that must be provided on Form 3115,
Application for Change in Accounting
Method.

February 23, 2026 574 Bulletin No. 2026–9
Table 1 (part A)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2025 in Short-Tail Lines of Business
(Informational Purposes Only)
Taxable Year
Beginning in
Auto Physical
DamageFidelity/Surety
Financial Guaranty/
Mortgage GuarantyInternationalOther*
2025 98.0171 94.8069 94.2020 94.9732 96.3288
2026 96.5385 96.5385 96.5385 96.5385 96.5385
2027–2034 98.2463 98.2463 98.2463 98.2463 98.2463
Taxpayer Not Using Composite Method
Years after 2034 98.2463 98.2463 98.2463 98.2463 98.2463
Taxpayer Using the Composite Method
2035 98.2463 98.2463 98.2463 98.2463 98.2463
Years after 2035
Use composite method discount factors published for the accident year that is two years prior to the
specified taxable year.
* For the Accident and Health line of business (other than disability income or credit disability insurance), the discount
factor for taxable years 2025 - 2034 is 98.2463 percent. This is also the discount factor used in taxable years after 2034
for taxpayers not using the composite method. For taxpayers using the composite method, the discount factor for losses
incurred in accident year 2025 for taxable years after 2034 is the discount factor published for the Accident and Health
line of business for losses incurred in the accident year coinciding with the taxable year.

Bulletin No. 2026–9 575 February 23, 2026
Table 1 (part B)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2025 in Short-Tail Lines of Business
(Informational Purposes Only)
Taxable Year
Beginning in
Reinsurance -
Non-
proportional
Assumed
Financial Lines
Reinsurance -
Non-
proportional
Assumed
Liability
Reinsurance -
Non-
proportional
Assumed
Property
Special Property
(Fire,
Allied Lines,
Inland Marine,
Earthquake,
Burglary, Theft,
Pet)Warranty
Short-Tail
Composite
2025 94.9406 93.8058 95.3714 97.0553 98.0069 96.6054
2026 96.5385 96.5385 96.5385 96.5385 96.5385 96.5385
2027–2034 98.2463 98.2463 98.2463 98.2463 98.2463 98.2463
Taxpayer Not Using Composite Method
Years after 2034 98.2463 98.2463 98.2463 98.2463 98.2463 98.2463
Taxpayer Using the Composite Method
2035 98.2463 98.2463 98.2463 98.2463 98.2463 98.2463
Years after 2035
Use composite method discount factors published for the accident year that is two years prior to the
specified taxable year.

February 23, 2026 576 Bulletin No. 2026–9
Table 3 (part A)
Discount Factors Under Section 846 (percent)
For Taxable Years Beginning in 2025
Short-Tail Lines of Business
(Informational Purposes Only)
Accident Year
Auto Physical
DamageFidelity/Surety
Financial Guaranty/
Mortgage GuarantyInternationalOther*
2025 98.0171 94.8069 94.2020 94.9732 96.3288
2024 96.9063 96.9063 96.9063 96.9063 96.9063
2023 98.5707 98.5707 98.5707 98.5707 98.5707
2022 98.6826 98.6826 98.6826 98.6826 98.6826
2021 98.5999 98.5999 98.5999 98.5999 98.5999
2020 98.4834 98.4834 98.4834 98.4834 98.4834
2019 98.4785 98.4785 98.4785 98.4785 98.4785
2018 98.5513 98.5513 98.5513 98.5513 98.5513
2017 98.5513 98.5513 98.5513 98.5513 98.5513
2016 98.5513 98.5513 98.5513 98.5513 98.5513
Taxpayer Not Using Composite Method
Years before 2016 98.5513 98.5513 98.5513 98.5513 98.5513
Taxpayer Using the Composite Method
Years before 2016 98.5707 98.5707 98.5707 98.5707 98.5707
* For the Accident and Health line of business (other than disability income or credit disability insurance), the discount
factor for taxable year 2025 is 98.2463 percent.

Bulletin No. 2026–9 577 February 23, 2026
Table 3 (part B)
Discount Factors Under Section 846 (percent)
For Taxable Years Beginning in 2025
Short-Tail Lines of Business
(Informational Purposes Only)
Accident
Year
Reinsurance -
Non-
proportional
Assumed
Financial Lines
Reinsurance -
Non-
proportional
Assumed
Liability
Reinsurance -
Non-proportional
Assumed
Property
Special Property
(Fire, Allied Lines,
Inland Marine,
Earthquake,
Burglary, Theft,
Pet)Warranty
Short-Tail
Composite
2025 94.9406 93.8058 95.3714 97.0553 98.0069 96.6054
2024 96.9063 96.9063 96.9063 96.9063 96.9063 96.9063
2023 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707
2022 98.6826 98.6826 98.6826 98.6826 98.6826 98.6826
2021 98.5999 98.5999 98.5999 98.5999 98.5999 98.5999
2020 98.4834 98.4834 98.4834 98.4834 98.4834 98.4834
2019 98.4785 98.4785 98.4785 98.4785 98.4785 98.4785
2018 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513
2017 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513
2016 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513
Taxpayer Not Using Composite Method
Years before
2019 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513
Taxpayer Using the Composite Method
Years before
2024 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707

February 23, 2026 578 Bulletin No. 2026–9
.03 Comments Regarding Composite
Method.
The Treasury Department and the IRS
request comments on the plans described
in section 5.02 of this revenue procedure,
including:
(1) comments on whether the Treasury
Department and the IRS should permit
taxpayers using the composite method to
use discount factors determined using the
approach described in section 5.02 of this
revenue procedure in taxable years begin-
ning in 2024 or 2025, and also provide
simplified procedures for taxpayers using
the composite method to change their
method of accounting to use such factors
in such taxable years;
(2) comments regarding any alterna-
tive approaches the Treasury Department
and the IRS should consider, including
elimination or alteration of the composite
discount method described in Section V of
Notice 88-100, either for short-tail lines
of business only or for both short-tail and
long-tail lines of business; and
(3) comments on what, if any, addi-
tional guidance regarding composite
method discount factors insurance compa-
nies require.
.04 Procedures for Submitting Com-
ments.
(1) Deadline. Written comments should
be submitted by May 22, 2026.
(2) Form and manner. The subject line
for the comments should include a refer-
ence to Revenue Procedure 2026-13. All
commenters are strongly encouraged to
submit comments electronically. How-
ever, comments may be submitted in one
of two ways:
(a) Electronically via the Federal
eRulemaking Portal at www.regulations.
gov (type IRS-2026-0134 in the search
field on the regulations.gov homepage to
find this revenue procedure and submit
comments); or
(b) By mail to: Internal Revenue Ser-
vice, CC:PA:01:PR (Revenue Procedure
2026-13), Room 5503, P.O. Box 7604,
Ben Franklin Station, Washington, D.C.,
20044.
(3) Publication of comments. The Trea-
sury Department and the IRS will publish
for public availability any comment sub-
mitted electronically or on paper to its
public docket on regulations.gov.
SECTION 7. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Grace Chang of the Office
of Associate Chief Counsel (Financial
Institutions & Products). For further infor-
mation regarding this revenue procedure,
contact Ms. Chang at (202) 317-4286 (not
a toll-free call).

Bulletin No. 2026–9 579 February 23, 2026
Part IV
Notice of Proposed
Rulemaking
Section 45Z Clean Fuel
Production Credit
REG-121244-23
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing and public hearing.
SUMMARY: This document contains
proposed regulations regarding the
clean fuel production credit enacted by
the Inflation Reduction Act of 2022 and
amended by the One, Big, Beautiful Bill
Act (OBBBA). These proposed regula-
tions would provide rules for determining
clean fuel production credits, including
credit eligibility rules, emissions rates,
and certification and registration require-
ments. In addition, the proposed regu-
lations would amend three sets of final
regulations: the elective payment elec-
tion regulations and the credit transfer
election regulations, to clarify language
relating to ownership of clean fuel pro-
duction facilities, and the Federal excise
tax registration regulations, to make
them clearer and more consistent with
the clean fuel production credit registra-
tion requirements in these proposed reg-
ulations. The proposed regulations would
affect domestic producers of clean trans-
portation fuel, taxpayers that may claim
a credit for a related producer’s fuel, and
excise tax registrants.
DATES: Written or electronic com-
ments must be received by April 6, 2026.
The public hearing is being held on May
28, 2026, at 10 a.m. Eastern Time (ET).
Requests to speak and outlines of topics to
be discussed at the public hearing must be
received by April 6, 2026. If no outlines
are received by April 6, 2026, the public
hearing will be cancelled. Requests to
attend the public hearing must be received
by 5 p.m. ET on May 26, 2026.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically via the Federal eRulemak-
ing Portal at https://www.regulations.gov
(indicate IRS and REG-121244-23) by
following the online instructions for sub-
mitting comments. Requests for a public
hearing must be submitted as prescribed
in the “Comments and Requests for a
Public Hearing” section. Once submitted
to the Federal eRulemaking Portal, com-
ments cannot be edited or withdrawn. The
Department of the Treasury (Treasury
Department) and the IRS will publish for
public availability any comments submit-
ted to the IRS’s public docket. Send paper
submissions to: CC:PA:01:PR (REG-
121244-23), Room 5503, Internal Reve-
nue Service, P.O. Box 7604, Ben Franklin
Station, Washington, DC 20044. A plain
language summary of the proposed regu-
lations will be made available at https://
www.regulations.gov.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Jennifer Golden or Danielle
Mayfield of the Office of Associate Chief
Counsel (Energy, Credits, and Excise Tax)
at (202) 317-6855 (not a toll-free number);
concerning submissions of comments or
the public hearing, Publications and Reg-
ulations Section at (202) 317-6901 (not
a toll-free number) or by email at publi-
chearings@irs.gov (preferred).
SUPPLEMENTARY INFORMATION:
Authority
This document contains proposed
amendments to the Income Tax Regula-
tions (26 CFR part 1) regarding sections
45Z, 1361, 4101, 6417, and 6418 of the
Internal Revenue Code (Code) as they
relate to the clean fuel production credit
determined under section 45Z (proposed
regulations). This document also contains
proposed amendments to the Manufactur-
ers and Retailers Excise Tax Regulations
(26 CFR part 48) regarding section 4101
as they relate to excise tax registration.
The proposed regulations would be issued
under the authority granted by sections
45Z, 1361(b)(3)(A), 4101(a)(1) and (c),
4222(c), 6001, 6417(h), 6418(h), and
7805(a) of the Code.
Section 45Z contains several dele-
gations of authority to the Secretary of
the Treasury or the Secretary’s delegate
(Secretary). Section 45Z(e) directs the
Secretary to issue guidance no later than
January 1, 2025, regarding implementa-
tion of section 45Z, including calculation
of emissions factors of transportation
fuel, the emissions rate table described
in section 45Z(b)(1)(B)(i), and the deter-
mination of clean fuel production cred-
its under section 45Z. Section 45Z(f)(2)
further authorizes the Secretary to issue
regulations regarding the fuel production
attributable to the taxpayer in the case of a
facility with multiple owners, and section
45Z(f)(1)(A)(i)(II) authorizes the Secre-
tary to issue guidance on certification and
other information with respect to certain
transportation fuels.
Section 45Z(f)(3) authorizes the Secre-
tary to prescribe additional related person
rules for other entities similar to the rule
described for corporations that are mem-
bers of an affiliated group of corporations
filing a consolidated return. This includes
the authority to prescribe rules for related
persons with respect to which the taxpayer
has reason to believe will sell fuel to an
unrelated person in a manner described in
section 45Z(a)(4).
Section 45Z(d)(5)(C) directs the Secre-
tary to issue regulations or other guidance
as the Secretary determines necessary to
carry out the purposes of section 45Z(d)
(5)(A)(iv), which excludes from the defi-
nition of “transportation fuel” any fuel
produced from a fuel for which a credit
under section 45Z is allowable.
Section 45Z(b)(1)(B)(ii) authorizes
the Secretary to determine, in the case
of any transportation fuel that is not a
sustainable aviation fuel (SAF), whether
a model is a successor model to the
Greenhouse gases, Regulated Emissions,
and Energy use in Transportation model
developed by the Argonne National
Laboratory (ANL). Additionally, sec-
tion 45Z(b)(1)(B)(i) directs the Secre-
tary, subject to section 45Z(b)(1)(B)(ii)
through (v), to annually publish a table

February 23, 2026 580 Bulletin No. 2026–9
setting forth the emissions rate for simi-
lar types and categories of transportation
fuels based on the amount of lifecycle
greenhouse gas (GHG) emissions as
described in section 211(o)(1)(H) of the
Clean Air Act (CAA) (42 U.S.C. 7545(o)
(1)(H)), as in effect on August 16, 2022
(CAA-2022) for such fuels, expressed
as kilograms of equivalent carbon diox-
ide (CO
2
e) per 1,000,000 British thermal
units (mmBTU), which a taxpayer must
use for purposes of section 45Z. The pro-
posed regulations cite to the CAA-2022
as enacted by section 1501(a)(2) of the
Energy Policy Act of 2005, Public Law
109-58, 119 Stat. 594, 1067 (2005),
amended by section 202(a)(1) of the
Energy Independence and Security Act
of 2007, Public Law 110-140, 121 Stat.
1492, 1521-22 (2007).
Section 45Z(b)(1)(B)(iv) authorizes the
Secretary to determine the regulations or
methodologies for emissions rate adjust-
ments to exclude any emissions attributed
to indirect land use change.
Section 45Z(b)(1)(B)(v)(I) requires
the Secretary to provide a distinct emis-
sions rate with respect to any transpor-
tation fuel derived from animal manure.
The emissions rate must be based on the
specific animal manure feedstock, which
may include dairy manure, swine manure,
poultry manure, and any other sources that
the Secretary determines to be appropri-
ate.
Section 45Z(b)(1)(B)(v)(II) authorizes
the Secretary to provide an emissions rate
less than zero with respect to any transpor-
tation fuel derived from animal manure.
Section 1361(b)(3)(A) authorizes the
Secretary to prescribe regulations provid-
ing exceptions to the subparagraph’s treat-
ment of a qualified subchapter S subsidi-
ary (as defined in section 1361(b)(3)(B))
for purposes of the Code.
Section 4101(a)(1) authorizes the Sec-
retary to prescribe regulations related to
any registration required under section
4101, including the time, form, manner,
and terms and conditions of such registra-
tion.
Section 4101(c) provides that rules
similar to the rules of section 4222(c)
apply to registration under section 4101.
Section 4222(c) authorizes the Secretary
to prescribe regulations related to the
denial, revocation, or suspension of any
registration under section 4222 if the Sec-
retary determines that a registrant has used
such registration to avoid the payment of
tax or to postpone or interfere with the
collection of tax, or that such denial, revo-
cation, or suspension is needed to protect
the revenue.
Section 6001 authorizes the Secretary
to prescribe regulations related to record-
keeping, statements, and special returns.
Section 6417(h) directs the Secretary
to issue such regulations or other guidance
as may be necessary to carry out the pur-
poses of section 6417.
Section 6418(h) directs the Secretary
to issue such regulations or other guidance
as may be necessary to carry out the pur-
poses of section 6418.
These regulations would also be issued
under the express delegation of authority
under section 7805(a) of the Code, which
authorizes the Secretary to prescribe
all needful rules and regulations for the
enforcement of the Code, including all
rules and regulations as may be necessary
by reason of any alteration of law in rela-
tion to Internal Revenue.
Background
I. Overview
Section 45Z, added to the Code by sec-
tion 13704 of Public Law 117-169, 136
Stat. 1818, 1997 (August 16, 2022), com-
monly known as the Inflation Reduction
Act (IRA), and amended by section 70521
of Public Law 119-21, 139 Stat. 72, 276
(July 4, 2025), commonly known as the
OBBBA, provides an income tax credit
(section 45Z credit) for clean transpor-
tation fuel produced domestically after
December 31, 2024, and sold by Decem-
ber 31, 2029. See section 13704(c) of the
IRA; section 70521(d) of the OBBBA;
section 45Z(g). The section 45Z credit is
a general business credit under section 38
of the Code.
The section 45Z credit replaces an
assortment of prior fuel incentives. Those
incentives consisted of income tax credit,
excise tax credit, and excise tax payment
provisions for various biofuels and other
alternative fuels sold for use as a fuel or
used as a fuel, including biodiesel, renew-
able diesel, compressed natural gas, sec-
ond generation biofuel, and SAF. See sec-
tions 40(b)(6); 40A(b)(1) and (2); 40B;
6426(c) through (e) and (k); and 6427(e).
Section 4101 authorizes the Secre-
tary to require registration with respect
to the section 4041 and section 4081 fuel
excise taxes, and requires registration with
respect to certain fuel tax credits, includ-
ing the section 45Z credit. Section 4101(a)
(1), as amended by section 70521(i) of the
OBBBA, and section 45Z(f)(1)(A)(i)(I)
impose a registration requirement under
section 4101 (section 4101 registration)
on a taxpayer claiming the section 45Z
credit.
Section 6417, added to the Code by
section 13801(a) of the IRA, and amended
by sections 70512(j)(2) and 70522(c) of
the OBBBA, allows an applicable entity
to elect to treat applicable credits (as
defined in section 6417(b)), including the
section 45Z credit, as a payment against
the tax imposed by subtitle A of the Code.
Section 6418, added to the Code by
section 13801(b) of the IRA, and amended
by sections 70512(h), 70513(b)(3)(B)(ii),
and 70521(j)(2) of the OBBBA, allows an
eligible taxpayer to elect to transfer eligi-
ble credits (as defined in section 6418(f)
(1)), including the section 45Z credit.
A taxpayer making a section 6417 or
section 6418 election must also complete
pre-filing registration, as provided in
regulations under those provisions. This
pre-filing registration is distinct from the
registration required for the section 45Z
credit, which is done under section 4101.
II. The Section 45Z Credit
A. Credit Eligibility
Under section 45Z(a)(1)(A), if a tax-
payer qualifies for a section 45Z credit,
the taxpayer is eligible to claim a sec-
tion 45Z credit for the taxable year in
which the taxpayer sells a transportation
fuel. To qualify for a section 45Z credit,
a taxpayer must: (i) produce a transporta-
tion fuel that meets the requirements for
suitability, emissions rate, coprocessing,
and prevention of double crediting; (ii)
produce the fuel at a qualified facility in
the United States, including in any U.S.
territories; (iii) be registered as a producer
of clean fuel under section 4101 at the time
of production; and (iv) sell the fuel to an
unrelated person in a qualified sale during

Bulletin No. 2026–9 581 February 23, 2026
the taxable year. See section 45Z(a)(1) and
(4), (d)(4), (d)(5)(A), and (f)(1). Transpor-
tation fuel produced after December 31,
2025, must be exclusively derived from a
feedstock that was produced or grown in
the United States, Mexico, or Canada. See
section 45Z(f)(1)(A)(iii); section 70521(a)
(2) of the OBBBA.
A taxpayer also cannot be: (i) a spec-
ified foreign entity, for taxable years
beginning after July 4, 2025; or (ii) a for-
eign-influenced entity (other than a for-
eign-influenced entity described in section
7701(a)(51)(D)(i)(II) of the Code), for
taxable years beginning after July 4, 2027.
See sections 45Z(f)(8) and 7701(a)(51).
Section 45Z(d)(4) defines “qualified
facility” as a facility used for the pro-
duction of transportation fuels. However,
the term “qualified facility” excludes any
facility for which one of the following
credits is allowed under section 38 for the
taxable year: (i) the credit for production
of clean hydrogen under section 45V of the
Code (section 45V credit); (ii) the credit
determined under section 46 of the Code
to the extent that such credit is attribut-
able to the energy credit determined under
section 48 of the Code with respect to any
specified clean hydrogen production facil-
ity for which an election is made under
section 48(a)(15) (section 48(a)(15) elec-
tion); and (iii) the credit for carbon oxide
sequestration under section 45Q of the
Code (section 45Q credit). Because these
credits cannot be stacked with the section
45Z credit, this preamble refers to the
section 45V credit, the section 48(a)(15)
election, and the section 45Q credit col-
lectively as the “anti-stacking credits” and
individually as an “anti-stacking credit.”
Section 45Z(d)(5)(A) defines “trans-
portation fuel” as a fuel that meets four
requirements. First, the fuel must be suit-
able for use as a fuel in a highway vehicle
or aircraft. Second, the fuel must have a
lifecycle GHG emissions rate (emissions
rate) of not greater than 50 kilograms (kg)
of CO
2
e per mmBTU. Section 45Z(d)(1)
defines “mmBTU” to mean 1,000,000
British thermal units; section 45Z(d)(2)
defines “CO
2
e” to mean, with respect to
any GHG, the equivalent carbon dioxide
(as determined based on relative global
warming potential). Third, the fuel must
not be derived from coprocessing an appli-
cable material (or materials derived from
an applicable material) with a feedstock
that is not biomass. Section 45Z(d)(5)(B)
(i) defines “applicable material” to mean
monoglycerides, diglycerides, and tri-
glycerides; free fatty acids; and fatty acid
esters. Section 45Z(d)(5)(B)(ii) defines
“biomass” to have the same meaning as
in section 45K(c)(3) of the Code, which
provides that biomass means any organic
material other than oil and natural gas (or
any product thereof), and coal (including
lignite) or any product thereof. Fourth, the
fuel must not be produced from a fuel for
which a section 45Z credit is allowable.
In the case of a taxpayer producing a
transportation fuel that is SAF, section
45Z(f)(1)(A)(i)(II) requires the taxpayer
to provide certification from an unre-
lated person.
1
For this purpose, section
45Z(a)(3) defines “sustainable aviation
fuel,” which these proposed regulations
refer to as a “SAF transportation fuel,” to
mean the non-kerosene portion of liquid
fuel that is a transportation fuel, is sold
for use in an aircraft, is not derived from
palm fatty acid distillates or petroleum,
and meets the requirements of either: (i)
ASTM International Standard D7566 or
(ii) the Fischer Tropsch (FT) provisions
of ASTM International Standard D1655,
Annex A1.
Section 45Z(a)(4) requires a taxpayer
to sell transportation fuel to an unrelated
person: (i) for use by such person in the
production of a fuel mixture; (ii) for use
by such person in a trade or business; or
(iii) who sells such fuel at retail to another
person and places such fuel in the fuel tank
of such other person. Section 45Z(f)(3)
provides that persons are treated as related
to each other if they would be treated as a
single employer under the regulations pre-
scribed under section 52(b) of the Code.
2

Section 45Z(f)(3) further provides that if
a corporation is a member of an affiliated
group of corporations filing a consolidated
return, such corporation is treated as sell-
ing fuel to an unrelated person if another
member of the group sells the fuel to an
unrelated person. Section 45Z(f)(3) also
authorizes the Secretary to prescribe sim-
ilar sale attribution rules for other related
entities, including rules for related per-
sons with respect to which the taxpayer
has reason to believe will sell fuel to an
unrelated person in a manner described in
section 45Z(a)(4).
Section 45Z(f)(1)(A)(i)(II) requires
a taxpayer producing a SAF transporta-
tion fuel to provide certification (in such
form and manner as the Secretary pre-
scribes) from an unrelated person demon-
strating compliance with: (i) any general
requirements, supply chain traceability
requirements, and information transmis-
sion requirements established under the
Carbon Offsetting and Reduction Scheme
for International Aviation (CORSIA);
or (ii) for any methodology similar to
CORSIA that satisfies the criteria under
section 211(o)(1)(H) of the CAA-2022,
requirements similar to the requirements
described for CORSIA. A taxpayer pro-
ducing a SAF transportation fuel must
also provide such other information as the
Secretary may require for purposes of car-
rying out section 45Z.
B. Credit Amount
Under section 45Z(a)(1), a taxpayer
calculates the amount of the section
45Z credit by multiplying the applicable
amount per gallon or gallon equivalent
with respect to a transportation fuel pro-
duced by the taxpayer and sold in a qual-
ified sale by the emissions factor for such
fuel. Per section 45Z(a)(5), if the credit
amount is not a multiple of one cent, then
it is rounded to the nearest cent. A taxpay-
er’s total section 45Z credit for a taxable
year is the sum of the section 45Z credit
for each transportation fuel sold during
the taxable year.
1. Applicable Amount
For fuel produced after December 31,
2025, the applicable amount for any trans-
portation fuel is either $0.20 or $1.00. See
section 45Z(a)(2); section 70521(g)(2) of
the OBBBA.
1
Both the preamble to the proposed regulations and the proposed regulations use the term “unrelated person” when describing the certification required by section 45Z(f)(1)(A)(i)(II). Section
45Z(f)(1)(A)(i)(II) refers to an “unrelated party,” which is synonymous with an unrelated person as used in section 45Z(a)(4) and (f)(3).
2
In determining eligibility for the section 45Z credit, a taxpayer must apply the controlled group rules under section 52 consistent with the statutory purpose of section 45Z.

February 23, 2026 582 Bulletin No. 2026–9
For fuel produced on or before Decem-
ber 31, 2025, the applicable amount varies
depending on whether the transportation
fuel is a SAF transportation fuel or is not
a SAF transportation fuel (non-SAF trans-
portation fuel) and is higher for SAF trans-
portation fuel than for non-SAF transpor-
tation fuel. For non-SAF transportation
fuel, the applicable amount is either $0.20
or $1.00. Section 45Z(a)(2). For SAF
transportation fuel, the applicable amount
is either $0.35 or $1.75. Section 45Z(a)(3)
(repealed for fuel produced after Decem-
ber 31, 2025, by section 70521(g)(2) of
the OBBBA).
The increased applicable amount is
available if the taxpayer produces the
transportation fuel at a qualified facil-
ity that satisfies the prevailing wage and
apprenticeship (PWA) requirements.
Section 45Z(c)(1) provides that for
calendar years beginning after 2024, the
applicable amount must be adjusted by
multiplying such amount by the inflation
adjustment factor for the calendar year in
which the sale of the transportation fuel
occurs. Section 45Z(c)(2) provides that
the inflation adjustment factor for the
section 45Z credit is the inflation adjust-
ment factor determined and published by
the Secretary pursuant to section 45Y(c),
determined by substituting “calendar
year 2022” for “calendar year 1992” in
section 45Y(c)(3). The inflation adjust-
ment factor for purposes of section 45Z
means, with respect to a calendar year,
a fraction the numerator of which is the
gross domestic product (GDP) implicit
price deflator for the preceding calendar
year and the denominator of which is the
GDP implicit price deflator for the calen-
dar year 2022. In this context, the term
“GDP implicit price deflator” means the
most recent revision of the implicit price
deflator for the GDP as computed and
published by the Department of Com-
merce before March 15 of the calendar
year.
If any inflation-adjusted applicable
amount is not a multiple of one cent, it
must be rounded to the nearest multiple of
one cent. Section 45Z(c)(1).
Section 45Z(f)(6)(A) provides that
rules similar to the prevailing wage
requirements of section 45(b)(7) apply.
Section 45Z(f)(6)(B) provides a special
rule for qualified facilities placed in ser-
vice before January 1, 2025, under which
such a facility need only satisfy prevail-
ing wage requirements for any alteration
or repair in taxable years beginning after
December 31, 2024. Section 45Z(f)(7)
provides that rules similar to the appren-
ticeship requirements of section 45(b)(8)
apply. Section 1.45Z-3 provides additional
rules on the PWA requirements under sec-
tion 45Z.
2. Emissions Factor and Emissions Rate
Under section 45Z(b)(1)(A), a trans-
portation fuel’s emissions factor measures
the reduction in a fuel’s emissions rate,
expressed as kg of CO
2
e per mmBTU,
relative to the statutory baseline emis-
sions rate of 50 kg of CO
2
e per mmBTU,
expressed as a fraction of the statutory
baseline. Expressed mathematically, the
emissions factor calculation is as follows:
(50 kg CO
2
e per mmBTU - emissions
rate) ÷ 50 kg CO
2
e per mmBTU
Under section 45Z(b)(2), any emissions
factor determined under section 45Z(b)(1)
(A) that is not a multiple of 0.1 must be
rounded to the nearest multiple of 0.1.
A taxpayer determines a fuel’s emis-
sions rate by either using the annual
emissions rate table published by the
Secretary or obtaining a provisional
emissions rate (PER) determination
from the Secretary. See section 45Z(b)
(1)(B) and (D). The emissions rate may
not be less than zero for any transpor-
tation fuel produced after December 31,
2025, except for fuel derived from ani-
mal manure. See section 45Z(b)(1)(B)(v)
and (b)(1)(E); section 70521(b) and (c)
(1) of the OBBBA.
Section 45Z(b)(1)(B)(i) directs the
Secretary, subject to section 45Z(b)(1)
(B)(ii) through (v), to annually publish
a table setting forth the emissions rates
for similar types and categories of trans-
portation fuels based on the amount of
lifecycle GHG emissions as described in
section 211(o)(1)(H) of the CAA-2022
for such fuels, expressed as kg of CO
2
e
per mmBTU. Section 211(o)(1)(H) of
the CAA-2022 defines lifecycle GHG
emissions as “the aggregate quantity of
greenhouse gas emissions (including
direct emissions and significant indirect
emissions such as significant emissions
from land use changes), as determined by
the Administrator [of the Environmen-
tal Protection Agency (EPA)], related
to the full fuel lifecycle, including all
stages of fuel and feedstock production
and distribution, from feedstock gener-
ation or extraction through the distribu-
tion and delivery and use of the finished
fuel to the ultimate consumer, where the
mass values for all greenhouse gases
are adjusted to account for their relative
global warming potential.” See also 42
U.S.C. 7602(a). Section 45Z(d)(3) pro-
vides that “greenhouse gas” has the same
meaning as under section 211(o)(1)(G) of
the CAA-2022.
Section 45Z divides transportation
fuel into two categories for purposes of
emissions rates: non-SAF transportation
fuel and SAF transportation fuel. Section
45Z(b)(1)(B)(ii) and (iii) provides the
methods for determining emissions rates
in each case.
Section 45Z(b)(1)(B)(ii) provides that
for non-SAF transportation fuel, the life-
cycle GHG emissions of such fuel must be
based on the most recent determinations
under the Greenhouse gases, Regulated
Emissions, and Energy use in Transpor-
tation model developed by the ANL, or
a successor model as determined by the
Secretary.
Section 45Z(b)(1)(B)(iii) provides that
for SAF transportation fuel, the lifecycle
GHG emissions of such fuel is deter-
mined in accordance with: (i) the most
recent CORSIA methodologies that have
been adopted by the International Civil
Aviation Organization (ICAO) with the
agreement of the United States; or (ii) any
methodology similar to the most recent
CORSIA methodologies that satisfies the
criteria under section 211(o)(1)(H) of the
CAA-2022.
Section 45Z(b)(1)(B)(iv) provides
that for transportation fuel produced after
December 31, 2025, notwithstanding
section 45Z(b)(1)(B)(i) through (iii), the
emissions rate must be adjusted to exclude
any emissions attributed to indirect land
use change. See section 70521(c) of the
OBBBA.
Section 45Z(b)(1)(B)(v) provides
that for any transportation fuel derived
from animal manure and produced after
December 31, 2025, a distinct emissions

Bulletin No. 2026–9 583 February 23, 2026
rate must be provided with respect to such
fuel based on the specific animal manure
feedstock. Such an emissions rate may be
less than zero. See section 70521(c) of the
OBBBA.
In the case of any transportation fuel
for which an emissions rate has not been
established in the annual emissions rate
table under section 45Z(b)(1)(B), a tax-
payer producing such fuel may file a peti-
tion with the Secretary for determination
of the PER with respect to such fuel. See
section 45Z(b)(1)(D).
C. Other Rules
Section 45Z(f)(2) provides that, if a
facility has more than one owner, pro-
duction from the facility will be allocated
among the owners in proportion to their
respective ownership interests in the gross
sales from such facility, except to the
extent provided in regulations prescribed
by the Secretary.
Section 45Z(f)(4) provides that under
regulations prescribed by the Secretary,
rules similar to the rules of section 52(d)
will apply to a pass-thru in the case of
estates and trusts.
Section 45Z(f)(5) provides that rules
similar to the rules of section 45Y(g)(6)
will apply for the allocation of the credit
to patrons of an agricultural cooperative.
III. Section 4101 Registration
Section 4101 of the Code generally pro-
vides rules for taxpayer registration. Section
4101(a)(1) provides a specific delegation of
authority to the Secretary to prescribe the
form and manner of registration by requir-
ing every person required to register under
section 4101 to register with the Secretary
at such time, in such form and manner, and
subject to such terms and conditions, as the
Secretary may by regulations prescribe.
Section 4101(a)(1) further provides that a
section 4101 registration may be used only
in accordance with regulations prescribed
under section 4101. Section 4101(a)(5)
requires reregistration under regulations
prescribed by the Secretary in the event of
certain changes in ownership.
A. Section 45Z Registration Requirement
Section 45Z(f)(1)(A)(i)(I) provides
that no section 45Z credit shall be deter-
mined unless the taxpayer is registered
as a producer of clean fuel under section
4101 at the time of production. Section
4101(a)(1) requires registration by “every
person producing a fuel eligible for the
clean fuel production credit (pursuant to
section 45Z),” effective for transportation
fuel produced after December 31, 2024.
3
B. Denial, Revocation, or Suspension of
Registration
Under section 4101(c), rules similar
to the rules of section 4222(c) apply for
purposes of denial, revocation, or suspen-
sion of registration under section 4101.
Section 4222 generally requires registra-
tion for certain tax-free sales under sec-
tion 4221. Section 4222(c) provides that
under regulations prescribed by the Sec-
retary, the registration of any person under
section 4222 may be denied, revoked, or
suspended if the Secretary determines: (i)
that such person has used such registration
to avoid the payment of any tax imposed
by chapter 32 of the Code (chapter 32), or
to postpone or in any manner to interfere
with the collection of any such tax, or (ii)
that such denial, revocation, or suspension
is necessary to protect the revenue. The
flush language of section 4222(c) pro-
vides that denial, revocation, or suspen-
sion under section 4222(c) is in addition
to any penalty provided by law for any act
or failure to act.
Section 48.4222(a)-1 provides rules for
registration, including application instruc-
tions. Section 48.4222(c)-1 provides rules
for revocation or suspension of registra-
tion and authorizes the IRS in certain cir-
cumstances to revoke or temporarily sus-
pend, upon written notice, the registration
of any person under section 4222.
IV. Section 6417
Section 6417 permits an applicable
entity to elect to treat an applicable credit
determined with respect to the applicable
entity for the taxable year as a payment
against Federal income taxes imposed by
subtitle A of the Code equal to the amount
of the credit. Section 6417(b)(9) provides
that the 45Z credit is an applicable credit.
V. Section 6418
Section 6418 permits an eligible tax-
payer to elect to transfer all or a portion of
an eligible credit determined with respect
to such taxpayer for any taxable year to an
unrelated taxpayer. Section 6418(f)(1)(A)
(viii) provides that the section 45Z credit
is an eligible credit.
VI. Prior Guidance and Publications
A. Notice 2022-58 (Request for
Feedback)
Notice 2022-58, 2022-47 I.R.B. 483
(released November 3, 2022), requested
stakeholder feedback on questions aris-
ing under section 45Z that should be
addressed in guidance.
B. Treasury Decision 9988 (Elective
Payment Election Regulations)
The Treasury Department and the IRS
published Treasury Decision 9988 in the
Federal Register (89 FR 17546, March
11, 2024), which finalized regulations
concerning the election to treat applicable
credits as a payment of Federal income
tax under section 6417 (Elective Payment
Election Regulations). The Elective Pay-
ment Election Regulations contain rules
on section 6417 that apply with respect
to an applicable credit, including the sec-
tion 45Z credit. Section 1.6417-2(c)(4)
requires an applicable entity or electing
taxpayer to own the underlying eligi-
ble credit property except in the case of
the advanced manufacturing production
credit under section 45X.
C. Treasury Decision 9993 (Credit
Transfer Election Regulations)
The Treasury Department and the IRS
published Treasury Decision 9993 in the
3
See section 13704(b)(5) of the IRA, as amended by section 70521(i) of the OBBBA.

February 23, 2026 584 Bulletin No. 2026–9
Federal Register (89 FR 34770, April
30, 2024), which finalized regulations
concerning the transfer election with
respect to eligible credits under section
6418 (Credit Transfer Election Regula-
tions). The Credit Transfer Election Reg-
ulations contain rules on section 6418
that apply with respect to an eligible
credit, including the section 45Z credit.
Section 1.6418-2(d)(1) requires an eligi-
ble taxpayer to own the underlying eligi-
ble credit property except in the case of
the advanced manufacturing production
credit under section 45X.
D. Notice 2024-49 (Registration
Requirement)
Notice 2024-49, 2024-26 I.R.B. 1781
(released May 31, 2024), provides guid-
ance on the section 45Z registration
requirements, including the time, form,
and manner of registration. Section 3 of
Notice 2024-49 also provides general
definitions, initial definitions of SAF
and non-SAF transportation fuels, and
an initial, non-exclusive list of primary
feedstocks, to help taxpayers applying
for registration identify fuels and pri-
mary feedstocks that may qualify for
the section 45Z credit. Notice 2025-10,
2025-6 I.R.B. 682 (released January 10,
2025), discussed later in this Background
section, modifies and supersedes these
definitions, and replaces them with the
definitions in the Appendix to Notice
2025-10.
E. Treasury Decision 9998 (PWA
Regulations)
The Treasury Department and the IRS
published Treasury Decision 9998 in the
Federal Register (89 FR 53184, June
25, 2024), which finalized regulations
concerning the PWA requirements under
several sections of the Code (PWA Reg-
ulations), including section 45Z. Section
1.45Z-3 provides rules on the application
of the PWA requirements to section 45Z.
The preamble to the PWA Regulations
contains a detailed discussion of the PWA
requirements, including applicability
dates and transition rules with respect to
the section 45Z credit. These proposed
regulations only address § 1.45Z-3 for
context and to the extent necessary to
clarify the rules herein. The PWA Regu-
lations are otherwise outside the scope of
this rulemaking.
F. Fact Sheet FAQs
A section 45Z Fact Sheet, FS-2024-25
(released July 10, 2024), provides answers
to certain frequently asked questions
(FAQs) on the section 45Z registration
requirements. This Fact Sheet is avail-
able at https://www.irs.gov/newsroom/
frequently-asked-questions-about-apply-
ing-for-registration-for-the-clean-fuel-
production-credit-under-ss-45z.
G. Notice 2025-10 (Notice of Intent to
Propose Rules)
Notice 2025-10 announced that the
Treasury Department and the IRS intended
to propose regulations (forthcoming pro-
posed regulations) addressing the section
45Z credit. In addition to providing back-
ground on the section 45Z credit, Notice
2025-10 explains the intended rules to be
included in forthcoming proposed regu-
lations and requests public feedback on
the draft regulatory text in the Appendix
to the notice. These proposed regulations
are the forthcoming proposed regulations
announced in Notice 2025-10.
H. Notice 2025-11 (Emissions Rate
Guidance)
Notice 2025-11, 2025-6 I.R.B. 704
(released January 10, 2025), provides
guidance regarding methodologies

for
determining emissions rates under section
45Z and provides the initial emissions rate
table required by section 45Z(b)(1)(B)(i).
Notice 2025-11 also requests feedback
related to emissions rates for the section
45Z credit.
The public feedback received in
response to Notice 2025-10, Notice 2025-
11, and Notice 2022-58 was carefully con-
sidered in the development of these pro-
posed regulations.
I. Notice 2025-37 (2025 Inflation
Adjustment Factor)
Notice 2025-37, 2025-30 I.R.B. 198
(July 21, 2025), provides the calendar
year 2025 inflation adjustment factor and
applicable amounts for the section 45Z
credit.
Explanation of Provisions
I. Overview
A. Section 45Z Regulations
These proposed regulations include six
sections relating to section 45Z, proposed
§§ 1.45Z-1, 1.45Z-2, 1.45Z-4 through
1.45Z-6, and 1.4101-1. These sections,
together with existing § 1.45Z-3, comprise
the “section 45Z regulations” referenced
in this Explanation of Provisions. The
section 45Z regulations would set forth
provisions to determine the eligibility for,
and the amount of, the section 45Z credit
for the production of clean transportation
fuel. These proposed regulations would
also provide rules for registration and for
filing claims for the section 45Z credit.
Proposed § 1.45Z-1 would provide the
definitions of terms generally applicable
for purposes of the section 45Z regula-
tions. Proposed § 1.45Z-2 would provide
general rules applicable to section 45Z,
such as rules for determining the amount
and timing of the credit, including rules
for the emissions factor and emissions rate
for transportation fuel and the PER pro-
cess. Proposed § 1.45Z-4 would provide
special rules applicable to section 45Z,
including required registration, anti-stack-
ing, anti-abuse, production attribution,
facility ownership, foreign feedstock and
prohibited foreign entity restrictions, and
recordkeeping and substantiation rules.
Proposed § 1.45Z-5 would provide the
procedures for certification of emissions
rates for SAF transportation fuel. Pro-
posed § 1.45Z-6 would provide proce-
dures for claiming a section 45Z credit.
Proposed § 1.4101-1 would provide rules
for registration under section 4101.
B. Amendments to Existing Sections
6417, 6418, and 4101 Regulations
The proposed regulations would
amend §§ 1.6417-2(c), 1.6418-2(d), and
48.4101-1. The proposed amendments
to §§ 1.6417-2(c)(4) and 1.6418-2(d)(1)
would clarify that sections 45Z and 45(d)
(3)(C) do not require a taxpayer to own
the underlying eligible credit property.

Bulletin No. 2026–9 585 February 23, 2026
Proposed § 48.4101-1(a)(7) would pro-
vide that a letter of registration is not a
determination of tax treatment under the
Code or a determination letter. Proposed
§ 48.4101-1(a)(8) would provide rules for
reregistration in the event of a change of
ownership or a change of employer identi-
fication number (EIN).
II. Definitions
Proposed § 1.45Z-1 would provide
definitions that apply for purposes of sec-
tion 45Z and the proposed regulations.
In addition, proposed § 1.45Z-1 would
clarify key statutory terms as discussed
in Parts II.A. through II.M. of this Expla-
nation of Provisions. The definitions
would also adopt the statutory language
for the terms “applicable amount” (sec-
tion 45Z(a)), “applicable material” (sec-
tion 45Z(d)(5)(B)(i)), “biomass” (section
45Z(d)(5)(B)(ii) (citing section 45K(c)
(3))), “CO
2
e” (section 45Z(d)(2)), “emis-
sions factor” (section 45Z(b)(1)(A)),
“greenhouse gas (GHG)” (section 45Z(d)
(3)), “lifecycle GHG emissions” (section
45Z(b)(1)(B)(i)), and “mmBTU” (section
45Z(d)(1)), and identify abbreviations
used in the proposed regulations, such
as “ASTM,” “Code,” U.S. Department
of Energy (DOE), EPA, “Secretary,”
IRS, “section 45Z credit,” and “section
45Z regulations.” Further, the defini-
tions would specify the relevant CORSIA
methodologies, define an emissions rate
in accordance with section 45Z(b)(1), and
define terms associated with the PER pro-
cess (see Part III.F.2. of this Explanation
of Provisions).
A. 45ZCF-GREET Model
Proposed § 1.45Z-1(b)(1) would define
“45ZCF-GREET model” as the model by
that name developed by the ANL and pub-
lished by the DOE for use in determining
the amount of lifecycle GHG emissions
for purposes of section 45Z. The 45ZCF-
GREET model is a user interface designed
to accept input related to a transportation
fuel production facility, execute calcula-
tions in the background, and display the
full lifecycle (in other words, well-to-
wheel) carbon intensity of produced trans-
portation fuel, measured in kg of CO
2
e per
mmBTU.
4
The 45ZCF-GREET model is
currently available at https://www.energy.
gov/eere/greet. All publicly available ver-
sions of the 45ZCF-GREET model, the
accompanying user manual, additional
information including FAQs, and any log
of changes to the model are available at
https://www.energy.gov/eere/greet. Part
III.E.3. of this Explanation of Provisions
discusses the use of the 45ZCF-GREET
model for purposes of section 45Z(b)(1)
(B).
B. Claim
Proposed § 1.45Z-1(b)(7) would define
“claim” to mean a completed Form 7218,
Clean Fuel Production Credit, including
all required information and documenta-
tion that a taxpayer files with its Federal
income tax return or Federal informa-
tion return for the taxable year for which
the section 45Z credit is determined. A
“claim” would include the making of an
election under section 6417 or section
6418. The proposed regulation would also
define “Form 7218” to mean Form 7218
and any successor form(s). These defined
terms, coupled with the claim filing pro-
cedures in proposed § 1.45Z-6, would
explain how a taxpayer may claim a sec-
tion 45Z credit.
C. Fuel
Proposed § 1.45Z-1(b)(19) would
define “fuel” as any liquid or gaseous
substance that can be consumed to sup-
ply heat or power. Therefore, for purposes
of section 45Z, the term “fuel” would
not include electricity. For an additional
explanation, see Part II.I.2. of this Expla-
nation of Provisions.
D. Gallon Equivalent
Section 45Z(a)(1)(A) bases the sec-
tion 45Z credit on a gallon (or gallon
equivalent) of transportation fuel without
defining the terms or providing a baseline
for non-liquid fuels. The proposed regu-
lations would use a gallon measurement
for liquid fuels and a gallon equivalent
for non-liquid fuels. Proposed § 1.45Z-
1(b)(20)(i) would define “gallon equiv-
alent” for purposes of section 45Z(a)(1)
(A) to mean, with respect to any non-liq-
uid fuel, the amount of such fuel that has
the energy equivalent of a gallon of gas-
oline, which refers to the amount of such
fuel that has a Btu content of 116,090
(lower heating value). The proposed reg-
ulations would use gasoline as the most
appropriate baseline fuel for determin-
ing gallon equivalency because gasoline
is the most common transportation fuel
in the United States, and section 45Z is
designed to incentivize domestic pro-
duction of transportation fuels that may
serve as alternatives to existing fossil
fuels. The use of a gasoline gallon equiv-
alent is also consistent with the gasoline
gallon equivalent requirement in section
6426(d)(3), which provided an excise
tax credit for many of the same types of
fuel that are eligible for the section 45Z
credit. Using the gasoline gallon equiva-
lent standard in section 6426(d)(3) in the
section 45Z context is further supported
by the fact that section 45Z replaced sec-
tion 6426(d). Proposed § 1.45Z-1(b)(20)
(ii) would provide that a fuel is consid-
ered non-liquid if it is in a gaseous state
at ambient pressure and temperature of 1
atmosphere and 60 degrees Fahrenheit,
respectively.
To facilitate implementation of a gal-
lon equivalent standard for non-liquid
fuels, it is necessary to specify whether
the standard is based on a lower heating
value or a higher heating value of the
baseline fuel, as the two types of heating
values have different energy contents. The
proposed regulations would use a lower
heating value, rather than a higher heating
value, because it is a better representation
of the useful energy provided by a trans-
portation fuel. Proposed § 1.45Z-1(b)(20)
(iii) would explain that the gallon equiva-
lent for a non-liquid fuel is calculated by
dividing the lower heating value of that
fuel (measured in Btu) by the lower heat-
ing value of a gallon of gasoline (116,090
Btu), rounded to 5 decimal places. Pro-
posed § 1.45Z-1(b)(20)(iv) and (v) would
provide the lower heating values of some
non-liquid fuels and an example of the
calculation of a gallon equivalent, respec-
tively.
4
As used in the preamble to these proposed regulations, the term “well-to-wheel” includes well-to-wake with respect to aviation fuel.

February 23, 2026 586 Bulletin No. 2026–9
E. Producer and Taxpayer Treated as a
Producer
1. In General
Proposed § 1.45Z-1(b)(26)(i) would
generally define the term “producer” for
purposes of section 45Z as the person that
engages in the production of a transpor-
tation fuel. Proposed § 1.45Z-1(b)(26)(iii)
would provide examples illustrating the
application of the definition. Section 45Z
requires the taxpayer to be registered as a
producer of clean fuel but does not specify
who the producer is if the production pro-
cess involves multiple persons and multi-
ple steps. The proposed regulations would
clarify this point.
2. Producer of Alternative Natural Gas
Proposed § 1.45Z-1(b)(26)(ii) would
provide that the “producer” of alternative
natural gas, including renewable natural
gas (RNG), for purposes of section 45Z
is the person that processes the untreated
sources of alternative natural gas (proces-
sor) to remove water, carbon dioxide, and
other impurities such that it is interchange-
able with fossil natural gas. This definition
would be consistent with the purpose of
section 45Z because the processor is the
most active participant in the production
process, and section 45Z incentivizes
production. The definition of “producer”
would therefore exclude any person that
removes conventional or alternative nat-
ural gas (CANG) from a pipeline, com-
presses it further after removal, and then
sells such further-compressed CANG
(compressor). Compression of CANG that
is already interchangeable with fossil nat-
ural gas also would not meet the proposed
definition of “production” (see Part II.F. of
this Explanation of Provisions).
Several stakeholders have raised ques-
tions about who should be considered the
producer of RNG for purposes of section
45Z. The Treasury Department and the
IRS understand that the processor and
the compressor are typically different
persons, and that the processor typically
performs most of the active production
and owns (or uses) a facility, as that term
is defined in proposed § 1.45Z-1(b)(18).
The Treasury Department and the IRS
further understand that the compressor
typically performs the final compression
step before a fuel is used in a vehicle and
typically owns (or uses) only compres-
sion equipment rather than a facility. As
a result, the compressor is not engaging in
production of a transportation fuel under
section 45Z(a)(1) and the production stan-
dard in proposed § 1.45Z-1(b)(27), and
would be unable to meet the requirement
that transportation fuel be produced at a
qualified facility as provided in section
45Z(d)(4) and proposed § 1.45Z-1(b)(28).
F. Production
Proposed § 1.45Z-1(b)(27)(i) would
define “production” (except for purposes
of section 45Z(a)(4)(A)) as all steps and
processes used to make a transportation
fuel. Production would begin with the
processing of primary feedstock(s) and
end with a transportation fuel ready to be
sold in a qualified sale. Production would
not include instances in which a person
uses a primary feedstock to produce a fuel
that meets the same ASTM standard as
the primary feedstock. The definition of
“production” would also incorporate the
rules in section 45Z(f)(1)(A)(ii) and (f)(1)
(B) requiring production to occur in the
United States.
The definition of “production” would
further clarify that minimal processing
would not qualify as production for pur-
poses of the section 45Z credit. Minimal
processing would generally include creat-
ing a fuel mixture or otherwise engaging
in activities that do not result in a chemi-
cal transformation. However, with respect
to CANG, production would include
processing untreated sources of alterna-
tive natural gas to remove water, carbon
dioxide, and other impurities such that it
is interchangeable with fossil natural gas.
Production of CANG would not include
compressing CANG that is already inter-
changeable with fossil natural gas to a
higher pressure.
Under the proposed regulations, the
blending of a transportation fuel into
another fuel to create a fuel mixture,
regardless of whether the fuel mixture
itself satisfies the requirements of section
45Z(d)(5)(A), would not constitute pro-
duction of a transportation fuel because
the blending process would constitute
minimal processing. For example, the
blending of ethanol and gasoline would
not constitute production of a transporta-
tion fuel.
Further, importing fuel that is largely
finished fuel and undergoes only minimal
processing in the United States would not
constitute production. Proposed § 1.45Z-
1(b)(27)(ii) would provide examples of
minimal processing, including instances
in which the same person engages in pro-
duction and subsequent blending.
In enacting section 45Z, Congress
replaced fuel credits and payments that
specifically incentivize blending (includ-
ing the credits under sections 40B and
6426(k), and the payment under section
6427(e)) with the section 45Z produc-
tion credit. Congress’s shift from blend-
ing incentives to a production incentive
demonstrates that Congress no longer
intended to incentivize blending. There-
fore, equating production with blending
would be contrary to Congress’s purpose
in enacting section 45Z.
G. Qualified Facility
1. Facility
Proposed § 1.45Z-1(b)(18) would
define a “facility,” as used in section
45Z(d)(4) and the proposed regulations,
to mean a single production line that pro-
duces a transportation fuel and would
include all components that function inter-
dependently to produce a transportation
fuel. The definition of “facility” would
also clarify the treatment of indirect,
post-production, and multipurpose equip-
ment. The definition would, for instance,
exclude CANG compression equipment
from a facility because it is post-produc-
tion equipment. The definition would
include examples involving carbon cap-
ture equipment and SAF transportation
fuel.
The proposed definition of “facility” is
neutral as to geographic proximity of the
components of the production line and
focuses instead on interdependent pieces
of equipment used to produce transpor-
tation fuel. This definition is consistent
with how provisions of the Code under
which similar tax credits are determined
define “facility.” It is also consistent with
stakeholders’ requests that a facility be
narrowly defined to minimize overlap

Bulletin No. 2026–9 587 February 23, 2026
with other credits and their concerns that
physical boundaries may be inadequate.
Accordingly, the proposed definition con-
siders that a section 45Z facility may be
co-located with another credit-eligible
facility, and that some production equip-
ment may be located upstream or down-
stream from, or in a different building
than, other equipment.
2. Qualified Facility
Proposed § 1.45Z-1(b)(28)(i) would
incorporate the definitions of “qualified
facility” in section 45Z(d)(4) and “facil-
ity” in proposed § 1.45Z-1(b)(18) and
clarify that a “qualified facility” must
satisfy the anti-stacking rules in section
45Z(d)(4)(B) and proposed § 1.45Z-4(b).
Proposed § 1.45Z-1(b)(28)(ii) would
define the term “anti-stacking credit” to
mean any of the three credits listed in sec-
tion 45Z(d)(4)(B).
H. Qualified Sale
The draft regulatory text in the Appen-
dix to Notice 2025-10 used the term
“qualifying sale.” The proposed regula-
tions would instead use the term “qual-
ified sale.” Proposed § 1.45Z-1(b)(29)
would define a “qualified sale” as a sale of
a transportation fuel in a manner described
in section 45Z(a)(4). The definition would
also: (i) clarify the term “sold for use in
a trade or business” for purposes of sec-
tion 45Z(a)(4)(B); (ii) incorporate the sale
attribution rule in section 45Z(f)(3) if fuel
is sold by another member of the taxpay-
er’s consolidated group (as defined in §
1.1502-1(b) and (h), respectively); and
(iii) prescribe an additional sale attribu-
tion rule, as authorized by section 45Z(f)
(3), for fuel sold by a related person if the
taxpayer is not a member of a consoli-
dated group.
The draft regulatory text in the Appen-
dix to Notice 2025-10 defined the term
“sold for use in a trade or business” to
mean sold for use as a fuel in a trade
or business within the meaning of sec-
tion 162 of the Code. The term did not
include a sale for blending or for further
processing, including use as a primary
feedstock to produce another fuel. Many
stakeholders raised concerns about the
interpretation of “sold for use in a trade
or business.” They noted that in the fuel
industry, many producers sell to related or
unrelated intermediaries, such as whole-
salers or dealers, rather than directly to
unrelated final purchasers. They asserted
that the “use as a fuel” language could
prevent all sales for resale, such as those
to intermediary dealers or wholesal-
ers, from qualifying for the section 45Z
credit. These stakeholders requested that
the “use as a fuel” language be removed
and that the phrase “use . . . in a trade
or business” be incorporated as written
in section 45Z(a)(4)(B). Stakeholders
also said that a “use as a fuel” limitation
could undercut the language in section
45Z(d)(5)(A), which requires only that a
transportation fuel be “suitable for use as
a fuel in a highway vehicle or aircraft,”
but not actually so used.
The proposed regulations would adopt
the stakeholders’ suggestion to remove
the “use as a fuel” language from the defi-
nition of “sold for use in a trade or busi-
ness.” Under the proposed regulations,
“trade or business” would have the same
meaning as in section 162 of the Code.
The meaning of “sold for use” would be
determined under these proposed regula-
tions and would apply solely for purposes
of section 45Z. The proposed regulations
would also explicitly clarify that the
term “sold for use in a trade or business”
includes the sale of fuel to an unrelated
person that subsequently resells the fuel in
its trade or business.
The proposed regulations retain the
draft regulatory text from the Appendix
to Notice 2025-10 that excludes a sale
for blending from the definition of “sold
for use in a trade or business.” A sale for
blending (if made to an unrelated person)
would qualify as a sale for use in the pro-
duction of a fuel mixture under section
45Z(a)(4)(A) and proposed § 1.45Z-1(b)
(29)(i)(A). Therefore, including a sale for
blending in the “sold for use in a trade or
business” definition, which relates to sec-
tion 45Z(a)(4)(B), would render a signif-
icant part of section 45Z(a)(4)(A) super-
fluous.
The proposed regulations do not retain
the draft regulatory text from the Appen-
dix to Notice 2025-10 that defined “sold
for use in a trade or business” to exclude
a sale for further processing, including
use as a primary feedstock to produce
another fuel. To prevent double crediting,
the OBBBA amended section 45Z(d)(5) to
exclude from the definition of a “transpor-
tation fuel” any fuel produced from a fuel
for which a section 45Z credit is allow-
able. See section 70521(e) of the OBBBA.
This statutory revision suggests that a sale
for use as a primary feedstock to produce
another fuel may qualify as a sale for use
in a trade or business under section 45Z(a)
(4)(B). The proposed regulations would
align the definition of “sold for use in a
trade or business” with the statutory lan-
guage.
The proposed regulations would fur-
ther define “sold for use in a trade or busi-
ness” to exclude a sale of fuel to a reseller
that subsequently sells the fuel at retail to
another person and places the fuel in the
tank of such other person. Such a sale (if
made to an unrelated person) would be
a qualified sale under section 45Z(a)(4)
(C) and proposed § 1.45Z-1(b)(29)(i)(C).
Therefore, inclusion of such sales in the
definition of “sold for use in a trade or
business,” which relates to section 45Z(a)
(4)(B), would render section 45Z(a)(4)(C)
superfluous.
As noted earlier, the proposed defini-
tion of “sold for use in a trade or business”
gives meaning to section 45Z(a)(4)(A)
and (C) and is consistent with a plain read-
ing of section 45Z(a)(4)(B). The proposed
definition is also consistent with the “suit-
able for use as a fuel in a highway vehicle
or aircraft” language in section 45Z(d)(5)
(A).
The draft regulatory text in the Appen-
dix to Notice 2025-10 incorporated the
sale attribution rule in section 45Z(f)(3)
for fuel sold by another member of the
taxpayer’s consolidated group. Many
stakeholders requested the adoption of
a broader “look-through” rule for sales
made through related intermediaries, so
that a taxpayer would be treated as sell-
ing fuel to an unrelated person if a related
person (for example, a related intermedi-
ary dealer or wholesaler) ultimately sold
the fuel to an unrelated person. The stake-
holders pointed to similar look-through
rules that the Treasury Department and
the IRS adopted with regard to credits
under sections 45 and 45J of the Code
in Notice 2008-60, 2008-30 I.R.B. 178,
and Notice 2023-24, 2023-13 I.R.B. 571,
respectively. The stakeholders expressed

February 23, 2026 588 Bulletin No. 2026–9
that many fuel producers are not orga-
nized as corporations and cannot utilize
the sale attribution rule under section
45Z(f)(3).
After the release of Notice 2025-10,
the OBBBA added rulemaking authority
to section 45Z(f)(3) that allows the Sec-
retary to prescribe additional related-per-
son sale attribution rules similar to the
statutory rule. See section 70521(f) of
the OBBBA. Based on this new grant of
authority, the proposed regulations would
adopt the stakeholders’ suggestion regard-
ing a broader look-through rule for sales
made through related persons. Proposed
§ 1.45Z-1(b)(29)(iv) would provide that,
for purposes of section 45Z, a taxpayer that
is not a member of a consolidated group is
treated as selling fuel to an unrelated per-
son if a related person sells the fuel to the
unrelated person. This rule would apply to
all sales made by related persons except
those specifically addressed in section
45Z(f)(3) and proposed § 1.45Z-1(b)(29)
(iii).
Proposed § 1.45Z-1(b)(29)(v) would
provide examples illustrating the defi-
nition of “qualified sale,” including the
“sold for use in a trade or business” defi-
nition as it relates to section 45Z(a)(4)(B),
the sale attribution rule for fuel sold by
another member of a taxpayer’s consoli-
dated group, the sale attribution rule for
fuel sold by a related person (other than
another member of a taxpayer’s consoli-
dated group), and a sale made by a tax-
payer that produces and subsequently
blends a transportation fuel.
I. Transportation Fuel
1. In General
Proposed § 1.45Z-1(b)(34) would
define “transportation fuel” as provided
in section 45Z(d)(5)(A), and would also
define associated terms. The proposed
regulations would define the term “suit-
able for use as a fuel in a highway vehicle
or aircraft” (suitable for use) to mean that
the fuel has practical and commercial fit-
ness for use as a fuel in a highway vehicle
or aircraft, or may be blended into a fuel
mixture that has practical and commercial
fitness for use as a fuel in a highway vehi-
cle or aircraft. The proposed definition of
“suitable for use” is consistent with long-
standing excise tax rules under § 48.4081-
1(c)(2) of the Manufacturers and Retailers
Excise Tax Regulations, with which the
fuel industry is familiar.
The proposed regulations would also
clarify that actual use as a fuel in a high-
way vehicle or aircraft is not required. For
example, diesel fuel that has practical and
commercial fitness for use as a fuel in a
highway vehicle or aircraft, but is ulti-
mately used as marine fuel, would satisfy
the “suitable for use” standard. The pro-
posed regulations would further provide
that CANG is suitable for use once it is
produced so that it is interchangeable with
fossil natural gas and would require only
minimal processing (for example, further
compression or liquefaction) to meet the
specifications of ASTM D8080. In addi-
tion, the proposed regulations would also
provide that a fuel that does not require
further processing and that may be
blended with or used as a component of
taxable fuel (within the meaning of sec-
tion 4083 of the Code) is suitable for use.
The proposed regulations would define
the term “produced from a fuel for which
a section 45Z credit is allowable,” as
used in section 45Z(d)(5)(A)(iv), to mean
that a fuel has a primary feedstock that
meets the definition of a transportation
fuel under section 45Z (without regard to
section 45Z(d)(5)(A)(iv)). This proposed
rule would prevent double crediting by
ensuring that only the first transportation
fuel in a production chain qualifies for a
section 45Z credit. See section 70521(e)
of the OBBBA. Thus, if one fuel is used
as a primary feedstock to produce a sec-
ond fuel, and the first fuel qualifies as a
transportation fuel for purposes of section
45Z, the second fuel would not qualify for
a section 45Z credit. For instance, SAF
produced from ethanol as a primary feed-
stock, and hydrogen produced from RNG
as a primary feedstock, may not qualify as
transportation fuel for purposes of section
45Z. However, a fuel could still qualify
for a section 45Z credit if its production
process uses a transportation fuel solely as
a process fuel or other non-primary-feed-
stock input.
The proposed regulations would pro-
vide examples illustrating the definitions
of “suitable for use” and “produced from
a fuel for which a section 45Z credit is
allowable.”
2. Electricity
The proposed regulations would not
include electricity in the definition of
“transportation fuel,” for several reasons.
Electricity production would therefore be
ineligible for the section 45Z credit.
First, at the time section 45Z was
enacted, the Code contained an assortment
of income tax credit, excise tax credit, and
excise tax payment provisions for various
biofuels and other alternative fuels sold
for use as a fuel or used as a fuel. These
included incentives for biodiesel, renew-
able diesel, and several different alterna-
tive fuels (including compressed natural
gas and second generation biofuel). Joint
Committee on Taxation, General Expla-
nation of Tax Legislation Enacted in the
117th Congress, JCS 1-23, at 278 (Dec.
31, 2023). Congress designed the section
45Z credit to replace these incentives,
which were only available for liquid or
gaseous fuels. See sections 40(b)(6);
40A(b)(1) and (2); 40B; 6426(c) through
(e) and (k); 6427(e). Therefore, for pur-
poses of section 45Z, it would be reason-
able to understand the term “fuel” as refer-
ring to a liquid or gaseous substance that
can be consumed to supply heat or power.
As a result, the term “transportation fuel”
under the proposed regulations would not
include electricity.
Second, the anti-stacking rules in sec-
tion 45Z(d)(4)(B) disallow receiving both
a section 45Z credit and certain other
credits with respect to the same facility for
a taxable year. See proposed § 1.45Z-1(b)
(28)(ii) (definition of anti-stacking credit);
Part IV.B. of this Explanation of Provi-
sions (discussion of anti-stacking rules).
The inclusion of the anti-stacking rules
indicates that Congress understood the
potential for activity at a particular facility
to generate multiple credits for a taxable
year and wished to foreclose that possibil-
ity. However, the section 45Y clean elec-
tricity production credit is not included in
the anti-stacking rules, which indicates
that the production of electricity is not
eligible for the section 45Z credit. Thus,
Congress’s omission of the section 45Y
credit from the anti-stacking rules suggests
that Congress did not understand the term
“fuel” to include electricity for purposes
of section 45Z. Further, Notice 2025-10,
which stated that the forthcoming pro-

Bulletin No. 2026–9 589 February 23, 2026
posed regulations intended to exclude
electricity as a transportation fuel, was
published approximately 6 months before
the enactment of the OBBBA. Though
the OBBBA amended certain aspects of
section 45Z discussed in Notice 2025-10,
including the definition of “transportation
fuel,” the OBBBA did not amend or clar-
ify the definition of “transportation fuel”
to include electricity.
Third, the Code already provides a
separate credit for clean electricity pro-
duction under section 45Y. When Con-
gress created the section 45Z credit, it also
created the section 45Y credit. Generally,
the section 45Y credit is not limited based
on how the electricity is ultimately used.
If the definition of “transportation fuel”
in section 45Z were to include electric-
ity, there would be significant overlap
between the electricity eligible for a credit
under section 45Z and the electricity eligi-
ble for a credit under section 45Y. Further,
a reading of section 45Z to include elec-
tricity in the definition of “transportation
fuel” would not be consistent with Con-
gressional intent in separately enacting
section 45Y to incentivize clean electricity
production and section 45Z to incentivize
production of clean transportation fuel.
J. Non-SAF Transportation Fuel
Proposed § 1.45Z-1(b)(24)(i) would
define “non-SAF transportation fuel” for
purposes of section 45Z as any transpor-
tation fuel that is not a SAF transportation
fuel. Proposed § 1.45Z-1(b)(24)(ii) would
provide a non-exclusive list of non-SAF
fuels that may qualify as a transportation
fuel, as well as descriptions of such fuels.
A non-SAF fuel described in proposed
§ 1.45Z-1(b)(24)(ii) would also need to
meet all the other applicable requirements
under section 45Z to qualify as a trans-
portation fuel. The list of non-SAF fuels
would generally track those fuels listed in
section 3.03 of Notice 2024-49. Proposed
§ 1.45Z-1(b)(24)(ii) would also retain a
few modifications that Notice 2025-10
made to the definitions in Notice 2024-49
to address concerns raised by stakehold-
ers. Consistent with Notice 2025-10, the
proposed regulations would clarify the
description of low-GHG CANG, includ-
ing the ASTM D8080 reference, and
would list ASTM D1152 (neat methanol)
as a specification for low-GHG methanol
in addition to ASTM D5797 (fuel blend
methanol).
The Treasury Department and the IRS
are cognizant of existing business prac-
tices in which producers make fuel that
may not meet all the proposed ASTM
specifications for that particular fuel.
Therefore, the proposed ASTM speci-
fications would be both non-exhaustive
and non-exclusive with respect to deter-
mining whether a fuel is a transportation
fuel for purposes of section 45Z. Pre-
scribing exclusive fuel-by-fuel specifica-
tions in these proposed regulations would
be impractical and may unintentionally
restrict future market developments. The
Treasury Department and the IRS request
comments on this general approach and
whether in some cases additional specific-
ity is needed.
K. SAF Transportation Fuel
Proposed § 1.45Z-1(b)(30) would
define “SAF transportation fuel” to mean
SAF as defined in section 45Z(a)(3), and
would also define associated terms. Fur-
ther, the proposed regulations would clar-
ify that a synthetic blending component
sold to a person that blends the fuel into
a fuel mixture described in ASTM D7566
is “sold for use in an aircraft” within the
meaning of section 45Z(a)(3).
L. Types and categories of transportation
fuel
Proposed § 1.45Z-1(b)(35) would
define the term “type of transportation
fuel” as a particular kind of fuel, and the
term “category of transportation fuel” as
the unique primary feedstock and pathway
used to produce a type of transportation
fuel. The definitions would clarify those
terms as used in section 45Z(b)(1)(B)(i).
M. Unrelated Person
Consistent with section 45Z(f)(3), pro-
posed § 1.45Z-1(b)(36) would define the
term “unrelated person” as a person not
related to the taxpayer. The term “unre-
lated party” has the same meaning as
“unrelated person” for purposes of the
certification required by section 45Z(f)(1)
(A)(i)(II)(aa). The definition would also
incorporate the related person definition
in section 45Z(f)(3).
III. General Rules
Proposed § 1.45Z-2 would provide gen-
eral rules regarding the section 45Z credit.
The proposed regulations would incorpo-
rate and clarify the rules in section 45Z(a)
through (c) regarding the amount of the
credit, the credit calculation, the timing
of the credit, emissions factors, and emis-
sions rates (including the emissions rate
table and the PER process).
A. Amount of Credit
Proposed § 1.45Z-2(a)(1) would incor-
porate and clarify the credit calculation
rules in section 45Z(a)(1). Proposed §
1.45Z-2(a)(2) would provide that the vol-
ume of a liquid fuel is measured on the
basis of gallons adjusted to ambient pres-
sure and temperature of 1 atmosphere
and 60 degrees Fahrenheit. The proposed
rule would reference proposed § 1.45Z-
1(b)(20)(ii) and (iii), respectively, for the
determination of whether a fuel is liquid
or non-liquid and the calculation of the
gallon equivalent of a non-liquid fuel.
Proposed § 1.45Z-2(a)(3) would pro-
vide rules and examples for the calcula-
tion of the section 45Z credit. Proposed
§ 1.45Z-2(a)(3)(i) would implement the
rounding rule provided in section 45Z(a)
(5) for credit amounts and would clarify
that the rule applies only after multiplying
the applicable amount, quantity of fuel,
and emissions factor. Proposed § 1.45Z-
2(a)(3)(ii) would require pro rata alloca-
tion for sales of transportation fuel pro-
duced after December 31, 2024, and held
in common storage with other fuels.
Prior to the enactment of the OBBBA,
the applicable amount meant either the
base amount provided in section 45Z(a)
(2)(A) or the alternative amount provided
in section 45Z(a)(2)(B), with an increased
base amount and alternative amount for
SAF transportation fuel under section
45Z(a)(3)(A). Section 70521(g)(2) of the
OBBBA eliminated the increased base
amount and alternative amount for SAF
transportation fuel produced after Decem-
ber 31, 2025. Proposed § 1.45Z-2(a)(4)
would define the term “applicable amount”
in accordance with section 45Z(a)(2), as

February 23, 2026 590 Bulletin No. 2026–9
amended by the OBBBA. Under the pro-
posed definition, the alternative amount
would apply in the case of any transpor-
tation fuel produced at a qualified facility
that satisfies the PWA requirements. The
base amount would otherwise apply in the
case of any transportation fuel produced at
a qualified facility that does not satisfy the
PWA requirements.
Proposed § 1.45Z-2(a)(4)(iv) would
implement the inflation adjustment
mechanics for the applicable amount pro-
vided under section 45Z(c), including the
inflation adjustment factor as provided in
section 45Z(c)(2). In Notice 2025-37, the
Treasury Department and the IRS pub-
lished the section 45Z inflation adjustment
factor for calendar year 2025. The section
45Z inflation adjustment factor for sub-
sequent calendar years will also be pub-
lished in the Internal Revenue Bulletin.
B. Timing of Credit
Proposed § 1.45Z-2(b)(1) would clar-
ify that a taxpayer is eligible to claim
the section 45Z credit only for the tax-
able year in which a qualified sale of a
transportation fuel occurs, provided the
taxpayer meets all other requirements to
claim the credit. See section 45Z(a)(1)
(A)(ii). Proposed § 1.45Z-2(b)(2) would
incorporate the effective date in section
13704(c) of the IRA, which provides that
section 45Z applies to transportation fuel
produced after December 31, 2024.
Proposed § 1.45Z-2(b)(3)(i) would
clarify that a transportation fuel may be
produced in an earlier taxable year than
the taxable year in which the qualified sale
of the fuel occurs, but that a qualified sale
may not occur before the date the fuel is
produced. As a result, if a taxpayer sells
transportation fuel before production, the
qualified sale would occur on the date of
production. Proposed § 1.45Z-2(b)(3)(ii)
would provide that a qualified sale occurs
at the time of the taxpayer’s sale to the
unrelated person, or if a related-person
sale attribution rule applies, at the time of
the related person’s sale to the unrelated
person.
C. Emissions Factor
Proposed § 1.45Z-2(c)(1) would incor-
porate the definition of “emissions factor”
provided under section 45Z(b)(1)(A). Pro-
posed § 1.45Z-2(c)(2) would incorporate
the emissions factor rounding rule in sec-
tion 45Z(b)(2) and provide an example.
D. Emissions Rate
Proposed § 1.45Z-2(d)(1) would incor-
porate the rules for determining the emis-
sions rate of a transportation fuel in sec-
tion 45Z(b)(1)(B) and (D). To determine
an emissions rate for a fuel, a taxpayer
would either use the applicable emissions
rate table published by the Secretary or, if
the applicable emissions rate table does
not establish an emissions rate for the
taxpayer’s fuel, a PER determined by the
Secretary.
Proposed § 1.45Z-2(d)(2) would incor-
porate section 70521(b) and (c)(1) of the
OBBBA, which provide that for transpor-
tation fuel produced after December 31,
2025, the emissions rate cannot be less
than zero, unless such fuel is derived from
animal manure. Section 45Z(b)(1)(B)(v),
which was added by section 70521(c)(1)
of the OBBBA, provides that, notwith-
standing that general rule, the Secretary
“may provide an emissions rate that is less
than zero” for a transportation fuel derived
from an animal manure feedstock such as
dairy, swine, or poultry manure. Proposed
§ 1.45Z-2(d)(2) would clarify that the lim-
itation regarding negative emissions rates
also applies to any transportation fuel
used as a production input. The proposed
rule would provide examples illustrating
the negative-emissions-rate limitation and
the effect of a negative emissions rate on
the emissions factor calculation.
Proposed § 1.45Z-2(d)(3) would incor-
porate the rule in section 45Z(b)(1)(B)(iv),
which was added by section 70521(c)(1)
of the OBBBA, that excludes emissions
attributed to indirect land use changes for
transportation fuel produced after Decem-
ber 31, 2025.
As discussed in Part III.E. and III.F.
of this Explanation of Provisions, under
proposed § 1.45Z-2(e)(2), the applicable
emissions rate table would direct a tax-
payer to use the allowed methodologies
described in section 45Z(b)(1)(B)(ii) and
(iii) and set out in proposed § 1.45Z-2(e)
(3), and any PER would be determined
pursuant to section 45Z(b)(1)(D) and the
procedures in proposed § 1.45Z-2(f).
E. Emissions Rate Table
1. In General
Proposed § 1.45Z-2(e) would incor-
porate the rules in section 45Z(b)(1)(B)
regarding the annual publication of a table
of emissions rates for similar types and cat-
egories of transportation fuels (emissions
rate table), including the requirement in
section 45Z(b)(1)(B)(i) that the emissions
rate table be published “[s]ubject to” the
requirements in section 45Z(b)(1)(B)(ii)
through (v).
The Treasury Department and the IRS
will annually publish an emissions rate
table for each calendar year in the Internal
Revenue Bulletin. The annual emissions
rate table for calendar year 2025 was pub-
lished in Notice 2025-11.
Proposed § 1.45Z-2(e)(2) would pro-
vide rules for identifying the applicable
emissions rate table that a taxpayer must
use in a given taxable year. Proposed
§ 1.45Z-2(e)(2)(i) would clarify that the
applicable emissions rate table for a tax-
payer is the emissions rate table that is
in effect on the first day of the taxpayer’s
taxable year of production. The proposed
rule would also clarify that, for produc-
tion after December 31, 2024, in taxable
years beginning before January 1, 2025,
the applicable emissions rate table is the
emissions rate table effective for 2025.
In response to Notice 2025-10, stake-
holders requested the ability to use an
emissions rate table tied to the year con-
struction of a facility began, regardless
of when the taxpayer actually produces
a transportation fuel. If a taxpayer begins
constructing a facility in 2025 but such
facility does not begin producing fuel
until a subsequent calendar year, the
stakeholders’ requested rule would allow
the taxpayer to use the emissions rate table
for 2025 to determine the emissions rate
of its fuel for all taxable years.
The proposed regulations would not
adopt this suggestion. Section 45Z(b)
(1)(B)(i) directs the Secretary to annu-
ally publish an emissions rate table and
requires taxpayers to use such tables. The
statute does not contemplate taxpayers
locking in the use of old tables in later
years. Additionally, the amount of the
section 45Z credit depends in part on the
emissions rate of the transportation fuel

Bulletin No. 2026–9 591 February 23, 2026
produced in a given taxable year. Accord-
ingly, the emissions rate of a fuel is prop-
erly established using the emissions rate
table in effect for the taxable year in which
such fuel was produced. The beginning of
construction date for the facility in which
the fuel is produced has no significance
with respect to emissions rates and is
unrelated to the actual emissions associ-
ated with the production of transportation
fuel after the facility is placed in service.
Proposed § 1.45Z-2(e)(2)(ii) would
clarify that if a taxpayer produces a fuel
for which the applicable emissions rate
table establishes an emissions rate, the
taxpayer must use the corresponding
allowed methodologies, as specified in
proposed § 1.45Z-2(e)(3), as provided in
such table to determine the emissions rate
for all such fuel produced during the tax-
payer’s taxable year.
Proposed § 1.45Z-2(e)(2)(iii)(A)
would clarify that the applicable emis-
sions rate table establishes the emissions
rate for a fuel if the emissions rate table
includes both the type and category of
that fuel. Proposed § 1.45Z-2(e)(2)(iii)
(B) would clarify that if an emissions rate
table does not initially include a type or
category of fuel, but an allowed method-
ology is updated to add such type or cate-
gory of fuel during the calendar year, then
that type or category of fuel is considered
included in such emissions rate table.
The proposed regulations would gen-
erally require a taxpayer to use the latest
annual emissions rate table (as opposed to
prior annual tables) and would prevent the
use of outdated modeling.
2. Allowed Methodologies
Proposed § 1.45Z-2(e)(3)(i) would pro-
vide that a taxpayer producing a fuel for
which an emissions rate is established by
the applicable emissions rate table must
determine the fuel’s emissions rate using
the allowed methodologies described in
proposed § 1.45Z-2(e)(3)(iv) and (v), as
directed by the applicable emissions rate
table.
Proposed § 1.45Z-2(e)(3)(ii) would
require a taxpayer to use the first version
of an allowed methodology that is pub-
licly available in the taxable year of pro-
duction and that includes the type and cat-
egory of the taxpayer’s fuel. However, if
an updated version of an allowed method-
ology becomes publicly available after the
first day of the taxable year of production
(but still within such taxable year), then
the taxpayer could choose to treat such
updated version as the most recent version
of such methodology. This choice would
give a taxpayer the flexibility to choose
the version of an allowed methodology to
use with respect to taxable years for which
an updated version of a methodology may
be published during a taxpayer’s taxable
year of production. This would generally
ensure that a taxpayer uses the latest mod-
eling and benefits from favorable updates
to a methodology, but would not penalize
a taxpayer if a methodology is updated
unfavorably during the taxable year.
The proposed regulations would
address the requirement in section 45Z(b)
(1)(B)(i) that the emissions rate table be
published “[s]ubject to” the requirements
in section 45Z(b)(1)(B)(ii) through (v).
Proposed § 1.45Z-2(e)(3)(iv) and (v)
would identify the allowed methodologies
for determining emissions rates for pur-
poses of the emissions rate table described
in section 45Z(b)(1)(B)(i). If the appli-
cable emissions rate table establishes the
emissions rate for a non-SAF transporta-
tion fuel, a taxpayer producing such fuel
would determine the fuel’s emissions
rate using the 45ZCF-GREET model, as
directed by the applicable emissions rate
table. If the applicable emissions rate table
establishes the emissions rate for a SAF
transportation fuel, a taxpayer producing
such fuel would determine the fuel’s emis-
sions rate using the most recent version of
the CORSIA Default Life Cycle Emis-
sions Values for CORSIA Eligible Fuels
lifecycle approach (CORSIA Default) or
the CORSIA Methodology for Calculat-
ing Actual Life Cycle Emissions Values
lifecycle approach (CORSIA Actual),
with the agreement of the United States,
or the 45ZCF-GREET model, as directed
by the applicable emissions rate table. The
proposed regulations would also clarify
that, for a given type and category of SAF
transportation fuel, a taxpayer must use
the same methodology to calculate life-
cycle GHG emissions associated with all
stages of fuel feedstock production and
distribution.
Section 45Z(b)(1)(B)(i) requires the
emissions rate table to be based on the
amount of lifecycle GHG emissions (as
described in section 211(o)(1)(H) of the
CAA-2022) for such fuels. Section 211(o)
(1)(H) of the CAA-2022 defines lifecycle
GHG emissions as the aggregate emis-
sions from all stages of the fuel’s produc-
tion and use, including feedstock produc-
tion and transportation, fuel production
and distribution, and use of the finished
fuel. This type of lifecycle analysis is
referred to as “well-to-wheel” emissions
analysis. As a result, for each type and cat-
egory of transportation fuel, the 45ZCF-
GREET model also uses “well-to-wheel”
emissions to calculate lifecycle GHG
emissions for all stages of fuel production,
as well as emissions resulting from use of
the fuel in transportation.
Section 70521(c)(1) of the OBBBA
provides that for fuel produced after
December 31, 2025, notwithstanding the
CAA reference in section 45Z(b)(1)(B)
(i), the emissions rate of a transportation
fuel shall exclude any emissions attributed
to indirect land use change. See section
45Z(b)(1)(B)(iv).
3. 45ZCF-GREET Model
a. In General
Section 45Z(b)(1)(B)(ii) provides that
in the case of non-SAF transportation fuel,
the lifecycle GHG emissions of such fuel
must be based on the most recent deter-
minations under the Greenhouse gases,
Regulated Emissions, and Energy use in
Transportation model developed by the
ANL, or a successor model (as determined
by the Secretary). The DOE changed the
name of the “Greenhouse gases, Regu-
lated Emissions, and Energy use in Trans-
portation” model to “Greenhouse gases,
Regulated Emissions, and Energy use in
Technologies” in 2020 and it is now gen-
erally referred to as the “GREET” model.
The GREET model refers to a suite
of models, the first version of which was
released in 1995 and is now called the
Research & Development Greenhouse
gases, Regulated Emissions, and Energy
use in Technologies (R&D GREET)
model. Since 1995, the DOE maintained
the GREET model to enable research
regarding lifecycle analyses of hun-
dreds of different methods of producing,
delivering, and using energy. The R&D

February 23, 2026 592 Bulletin No. 2026–9
GREET model was not designed to be
used for determining emissions rates for
tax credits, including the section 45Z
credit, but the current suite of GREET
models includes different versions, some
of which are designed to facilitate particu-
lar regulatory regimes.
As of February 4, 2026, the DOE’s
GREET website lists the following dif-
ferent versions of the GREET model:
R&D GREET, 40BSAF-GREET, 45VH2-
GREET, 45ZCF-GREET, CA-GREET4.0,
and ICAO-GREET. See https://energy.
gov/eere/greet. For purposes of the section
45Z credit, the phrase “most recent deter-
minations under the Greenhouse gases,
Regulated Emissions, and Energy use in
Transportation model” in section 45Z(b)
(1)(B)(ii) is best understood as referring
to the most recent determinations under
the 45ZCF-GREET model. As discussed
in Part III.E.3.b. of this Explanation of
provisions, the proposed regulations
would also designate the 45ZCF-GREET
as a successor model to the GREET model
under section 45Z(b)(1)(B)(ii).
Some stakeholders have suggested that
the R&D GREET model should be used
for the section 45Z credit. However, the
45ZCF-GREET model is the only appro-
priate GREET model to use for purposes
of the section 45Z credit because the R&D
GREET model is not limited to transpor-
tation fuels and includes information that
is based on preliminary analyses (that is,
analyses that are not yet complete, have
significant technical uncertainties, or are
still being reviewed by laboratory staff,
the DOE staff, or independent experts).
See generally GREET, Office of Energy
Efficiency & Renewable Energy, DOE,
available at https://www.energy.gov/eere/
greet.
While the R&D GREET model is a
valuable tool for characterizing the ben-
efits and impacts of energy technologies
in a directional manner and testing new
and updated data and parameters, it is
designed to provide flexibility in user-de-
fined parameters and methodological
choices for a wide variety of research pur-
poses and thus not appropriate for use in
policy applications without modifications.
Because the R&D GREET model offers
users many choices regarding analysis
methodology (for example, co-product
accounting method and global warm-
ing potential values), different users can
calculate different emissions rates with
respect to the same fuel. Many of these
choices would not be appropriate for the
specific context of the section 45Z credit
given the potentially preliminary nature
of much of the information represented in
R&D GREET and given that specific rep-
resentations of activities, and their emis-
sions, are needed in a specific fashion (for
example, to comply with the requirements
of section 45Z). Given the limitations of
some of the data underlying aspects of
the R&D GREET model and the fact that
the model does not predetermine for the
user the methodologies and accounting
parameters that are appropriate for com-
pliance with the requirements of section
45Z, R&D GREET does not provide the
analytical and methodological specificity
necessary to meet the specific objectives
or statutory requirements of the section
45Z credit.
ANL developed, and the DOE pub-
lished, the 45ZCF-GREET model as a
specific version of the GREET model to
determine emissions rates that also meets
three key parameters: (i) user-friendliness
and consistency, (ii) technical robustness
of the pathways represented, and (iii) con-
sistency with the requirements of section
45Z. The 45ZCF-GREET model and the
45ZCF-GREET User Manual are avail-
able at https://www.energy.gov/eere/greet.
The first version of the 45ZCF-GREET
model, released on January 15, 2025,
included the most commonly used types
and categories of fuel that are anticipated
to meet the eligibility requirements to
claim the section 45Z credit. The 45ZCF-
GREET model and the 45ZCF-GREET
User Manual were updated in May 2025;
such updates included adding pathways
for alternative natural gas from coal mine
methane capture and ethanol from U.S.
corn wet mills. Additional types and cate-
gories of fuel may be added in future ver-
sions of the 45ZCF-GREET model.
Implementation of the section 45Z
credit requires that data used to calculate
emissions rates reflect a given taxpayer’s
specific operations and that such data be
independently verifiable to the extent
possible. Use of facility-specific veri-
fiable data ensures that the section 45Z
credit is available only to those fuels that
meet statutory requirements. For certain
parameters, bespoke inputs are unlikely
to be easily measured by taxpayers and/
or independently verifiable with high
fidelity, given the current status of verifi-
cation mechanisms. Thus, certain param-
eters in the 45ZCF-GREET model are
fixed assumptions, referred to as “back-
ground data,” that are based on the best
available data and may not be changed by
users. Alternatively, the “foreground data”
in the 45ZCF-GREET model are param-
eters that must be input by the user. The
45ZCF-GREET User Manual contains
further details on background and fore-
ground data.
b. 45ZCF-GREET as a Successor Model
The Treasury Department and the IRS
recognize that the continued existence
of the R&D GREET model and periodic
updates to both the 45ZCF-GREET model
and the R&D GREET model may create
uncertainty about which GREET model to
use. To address any potential uncertainty,
the proposed regulations would invoke the
Secretary’s express delegation of author-
ity in section 45Z(b)(1)(B)(ii) to require
use of the 45ZCF-GREET model as a suc-
cessor model.
In drafting the proposed regulations,
the Treasury Department and the IRS con-
sidered the statutory definition of the term
“lifecycle greenhouse gas emissions” in
section 211(o)(1)(H) of the CAA-2022
and the specific objectives of section 45Z.
The Treasury Department and the IRS also
consulted with the DOE. Accordingly, the
proposed regulations would reflect that
the 45ZCF-GREET model is a model
specifically developed by the ANL as a
derivative of and successor to the R&D
GREET model to meet the requirements
and objectives of section 45Z.
c. Most Recent Determinations Under
GREET
Regardless of any determination by the
Secretary of a successor model, the phrase
“most recent determinations under the
Greenhouse gases, Regulated Emissions,
and Energy use in Transportation model”
in section 45Z(b)(1)(B)(ii) can be under-
stood to refer to determinations under the
most recent version of the 45ZCF-GREET
model.

Bulletin No. 2026–9 593 February 23, 2026
As discussed in Part III.E.3.a. of this
Explanation of Provisions, the 45ZCF-
GREET model is tailored to the admin-
istration of the section 45Z credit and
includes features that make it easy for
taxpayers to use. Use of the most recent
version of the 45ZCF-GREET model
would also ensure that the pathways and
approaches provided for determining
“well-to-wheel” emissions for various
fuel production processes are of sufficient
methodological certainty to be appropriate
for determining eligibility for a tax credit.
d. SAF Portion of 45ZCF-GREET Model
as a Similar Methodology
The proposed regulations would allow
taxpayers to use the 45ZCF-GREET
model to determine emissions rates for
SAF transportation fuel (SAF portion of
45ZCF-GREET model). The SAF portion
of the 45ZCF-GREET model is a “simi-
lar methodology” to CORSIA under sec-
tion 45Z(b)(1)(B)(iii)(II) because, like
the CORSIA fuel lifecycle methodolo-
gies, it evaluates the full fuel lifecycle,
including all stages of fuel and feedstock
production through to the end use of the
finished fuel. The DOE worked with the
Treasury Department and other Federal
agencies to develop the 45ZCF-GREET
model, including specifications for and
limitations on background and foreground
data, to satisfy the statutory requirements
of section 45Z. Additionally, in the con-
text of whether the R&D GREET model
could be used to determine lifecycle GHG
emissions for purposes of section 40B(e)
(2),
5
the EPA identified certain neces-
sary components of a lifecycle GHG
analysis consistent with section 211(o)
(1)(H) of the CAA-2022 that the R&D
GREET model lacked. The EPA subse-
quently determined that the new 40BSAF-
GREET 2024 model, created in 2024 for
the now-expired SAF credit under section
40B, included the previously identified
absent categories of emissions.
6
Similarly,
the EPA found that the 45ZCF-GREET
model includes the categories of emis-
sions it previously identified as missing
from the R&D GREET model, the lack of
which made R&D GREET insufficient for
calculating lifecycle GHG emissions for
purposes of section 211(o)(1)(H) of the
CAA-2022.
7

The 45ZCF-GREET model contains
certain necessary components of a lifecy-
cle GHG analysis consistent with section
211(o)(1)(H) of the CAA-2022 as applied
for purposes of the section 45Z regulations.
8

The 45ZCF-GREET model is consistent
with the requirements of section 45Z(b)(1)
(B)(iii). Therefore, emissions rates for SAF
transportation fuels calculated using the
45ZCF-GREET model would also be con-
sistent with those requirements as applied
for purposes of the section 45Z regulations.
See section 45Z(b)(1)(B)(i).
e. Other Aspects of 45ZCF-GREET
Model
In the 45ZCF-GREET model, for pur-
poses of accounting for emissions asso-
ciated with hydrogen (as a production
input), natural gas alternatives (as a pro-
duction input or as the transportation fuel
produced), electricity, and carbon capture
and sequestration, rules similar to the rules
under section 45V would apply unless oth-
erwise specified by the 45ZCF-GREET
model with respect to technical modeling
issues or other technical differences. The
proposed regulations would also clarify
the similar rule for incrementality with
respect to the use of energy attribute cer-
tificates in the 45ZCF-GREET model. See
also § 1.45V-4(d).
In January 2025, the United States
Department of Agriculture (USDA) pub-
lished a beta version of the USDA Feed-
stock Carbon Intensity Calculator (USDA
FD-CIC). The beta version of the USDA
FD-CIC is undergoing testing, peer
review, and public comment in prepara-
tion for the publication of a final version
of USDA FD-CIC. Following publication
of the final version of USDA FD-CIC, the
Treasury Department and the IRS antici-
pate that a section 45Z-specific version of
the Feedstock Carbon Intensity Calculator
(FD-CIC) module will be included as an
input to the DOE’s 45ZCF-GREET model
(45ZCF FD-CIC) used for calculating
carbon intensity adjustments under sec-
tion 45Z for feedstocks that are produced
using certain agricultural practices. Such
practices may include no till, reduced
till, cover crops, and nutrient manage-
ment. 45ZCF FD-CIC may undergo peri-
odic updates, including incorporation of
new data and methodologies from other
FD-CIC versions (for example, USDA
FD-CIC, R&D GREET FD-CIC (R&D
FD-CIC)), to incorporate more recent data
or new data sources, types of practices,
feedstock types, or changes to geographic
specificity. The results of the 45ZCF
FD-CIC are expected to inform the emis-
sions rates calculated under the 45ZCF-
GREET model. The Treasury Department
and the IRS anticipate that 45ZCF FD-CIC
may be used for fuel produced and sold in
2025 even though 45ZCF FD-CIC likely
will be published in 2026.
The Treasury Department and the IRS
anticipate that adoption of 45ZCF FD-CIC
would entail additional requirements
particular to its use, such as agricultural
practice implementation, recordkeeping,
and verification, which may include rules
similar to those provided in the USDA’s
technical guidelines for crops used as bio-
fuel feedstocks in 7 CFR 2100, subparts
D, E, and F. The Treasury Department and
the IRS anticipate publishing additional
guidance on these requirements in coor-
dination with the publication of 45ZCF
FD-CIC.
5
As in section 45Z(b)(1)(B)(iii)(II), section 40B(e)(2) requires that a methodology similar to CORSIA must also satisfy the criteria under section 211(o)(1)(H) of the CAA-2022. See also
Notice 2024-37, 2024-21 I.R.B. 1191.
6
See Letter from Joseph Goffman, Principal Deputy Assistant Administrator for the Office of Air and Radiation, U.S. Environmental Protection Agency, to Lily Batchelder, Assistant Secretary
for Tax Policy, U.S. Department of Treasury (December 13, 2023) (EPA December 2023 Letter), available at https://home.treasury.gov/system/files/136/Final-EPA-letter-to-UST-on-SAF-
signed.pdf.
7
See Letter from Joseph Goffman, Assistant Administrator for the Office of Air and Radiation, U.S. Environmental Protection Agency, to Aviva Aron-Dine, Deputy Assistant Secretary for
Tax Policy, U.S. Department of Treasury (January 8, 2025) (EPA January 2025 Letter), available at https://home.treasury.gov/system/files/136/January-2025-EPA-letter-to-UST-on-45zcf-
GREET-signed.pdf.
8
The 45ZCF-GREET model includes significant indirect emissions from land use, crop production, and livestock. Due to the OBBBA, indirect emissions from land use, also known as
induced or indirect land use change, will be excluded for purposes of transportation fuel produced after December 31, 2025. See section 45Z(b)(1)(B)(iv); section 70521(c) of the OBBBA.

February 23, 2026 594 Bulletin No. 2026–9
F. Provisional Emissions Rate (PER)
1. In General
Many stakeholders have expressed the
urgent need for guidance to clarify the
scope and mechanics of the PER process
referenced in section 45Z(b)(1)(D), which
provides that if the emissions rate table
does not establish an emissions rate for a
transportation fuel, a taxpayer producing
such fuel may file a petition with the Sec-
retary for determination of the emissions
rate with respect to such fuel, known as
a “PER.”
Proposed § 1.45Z-2(f)(1) would estab-
lish the procedures a taxpayer must fol-
low to request a PER determination. The
proposed regulations would require a tax-
payer to submit an emissions value request
(EVR) to the DOE and obtain a calculated
emissions value letter (CEVL) from the
DOE, prior to filing a PER petition.
2. PER Terminology
Proposed § 1.45Z-1(b) would define
terms associated with the PER procedures
set out in proposed § 1.45Z-2(f). Proposed
§ 1.45Z-1(b)(12) would define “eligible
fuel,” for purposes of the PER procedures
in proposed § 1.45Z-2(f) and the associ-
ated definitions in proposed § 1.45Z-1(b),
as either a type of fuel not included in the
applicable emissions rate table, or a type
of fuel included in the applicable emis-
sions rate table but whose category is not
included in the applicable emissions rate
table.
Proposed § 1.45Z-1(b) would also
define terms related to requesting an
emissions value (EV) from the DOE,
which would be a prerequisite to filing
a PER petition. Proposed § 1.45Z-1(b)
(15) would define the term “emissions
value” or “EV” as the value setting forth
the DOE’s analytical assessment of the
lifecycle GHG emissions associated
with the fuel for which the EVR was
made. Proposed § 1.45Z-1(b)(17) would
define the term “EV applicant” as a tax-
payer submitting an EVR for an eligible
fuel to the DOE. Proposed § 1.45Z-1(b)
(6) would define the term “calculated
emissions value letter” or “CEVL” as
the letter setting forth the emissions
value and DOE control number that the
DOE issues to an applicant whose EVR
is completed.
3. Threshold Requirements
Proposed § 1.45Z-2(f)(2) would pro-
vide that the DOE and the IRS, respec-
tively, will deny any EVR or PER petition
for a type and category of fuel included
in the applicable emissions rate table.
The proposed rule would provide that a
taxpayer may only request an emissions
value, and subsequently a PER determina-
tion, for an eligible fuel. Because the sec-
tion 45Z credit is computed for a type and
category of fuel, the proposed rule would
also clarify that the DOE and the IRS,
respectively, will deny any EVR or PER
petition based on a facility rather than a
type or category of fuel.
4. Emissions Value Requests
Proposed § 1.45Z-2(f)(3) would
describe the rules for requesting an EV
from the DOE for an eligible fuel. Pro-
posed § 1.45Z-2(f)(3)(i) would direct
applicants to follow the guidance and
procedures that the DOE will separately
publish for EVRs, including the section
45Z EVR process instructions (Instruc-
tions). Proposed § 1.45Z-2(f)(3)(i) would
also describe common assumptions for
EVRs, including the well-to-wheel system
boundary and certain accounting rules.
Proposed § 1.45Z-2(f)(3)(ii) would
describe the information required by the
DOE for an EVR. Proposed § 1.45Z-2(f)
(3)(ii)(A) would generally require that
an EV applicant provide all informa-
tion required by the DOE’s Instructions,
including sections of a Class 3 Front-End
Engineering and Design (FEED) study
(or studies) or other indicator of project
maturity, as determined by the DOE, and
a completed Section 45Z EVR Form.
Proposed § 1.45Z-2(f)(3)(ii)(B) would
provide that for an EVR for an eligible
fuel that is a category of hydrogen, an
EV applicant must first submit a section
45V Emissions Value Request Applica-
tion in accordance with the process for a
PER determination for the section 45V
credit, as described in § 1.45V-4(c). The
proposed rule would provide that the EV
applicant must submit the letter obtained
under the section 45V EVR process from
the DOE stating the well-to-gate emis-
sions value that the DOE determined with
respect to the facility’s hydrogen produc-
tion pathway and the control number that
the DOE assigned to the section 45V EVR
Application. Once such applicant com-
pletes the section 45V EVR process and
submits its EVR for purposes of section
45Z, the DOE may issue a CEVL, which
would include an EV that fully accounts
for the well-to-wheel emissions of such
category of hydrogen.
The proposed rule would also clarify
that if the EV applicant produces such
category of hydrogen at multiple facili-
ties, such applicant will need to provide
this information for each facility. See Part
IV.B. of this Explanation of Provisions
for a discussion of the anti-stacking rules
between section 45Z and section 45V.
5. Submitting a PER petition
Proposed § 1.45Z-2(f)(4) would pro-
vide the exclusive procedures for request-
ing a PER determination. Proposed §
1.45Z-2(f)(4)(i) would clarify that a tax-
payer requests a PER determination by fil-
ing a PER petition with the Form(s) 7218
included with the taxpayer’s timely filed
(including extensions) Federal income tax
return or Federal information return for
the first taxable year for which the tax-
payer claims the section 45Z credit for
the eligible fuel to which the PER peti-
tion relates. Proposed § 1.45Z-2(f)(4)(ii)
would describe the required content of a
PER petition, which would consist of the
CEVL for each eligible fuel for which the
section 45Z credit is being claimed for a
given taxable year.
6. Determination of a PER
Proposed § 1.45Z-2(f)(5)(i) would pro-
vide that a properly filed PER petition is
deemed accepted by the IRS, and that the
deemed acceptance constitutes the Secre-
tary’s determination of the PER. As such,
proposed § 1.45Z-2(f)(5)(ii) would clarify
that a taxpayer may rely on the EV the
DOE provides in a CEVL for purposes
of calculating and claiming the section
45Z credit, provided that all information,
representations, or other data the taxpayer
provided to the DOE in support of the tax-
payer’s EVR are accurate.

Bulletin No. 2026–9 595 February 23, 2026
G. Relation back of Emissions Rates
(Including PER)
Proposed § 1.45Z-2(g) would pro-
vide that when an emissions rate is first
determined for a type and category of
fuel, whether established in an applicable
emissions rate table or by a PER deter-
mination, that emissions rate will relate
back to January 1, 2025. The proposed
rule would ensure that even if a taxpayer
cannot determine the emissions rate for
a type and category of fuel at the time of
production, either because such type and
category of fuel are not established in the
applicable emissions rate table or because
the Secretary has not determined a PER,
such taxpayer may utilize a later-deter-
mined emissions rate for such fuel as of
the date of production.
I V. Special Rules
Proposed § 1.45Z-4 would provide
special rules with respect to the determi-
nation of a section 45Z credit. Generally,
these rules would address the: (i) required
registration at the time of production; (ii)
anti-stacking rules; (iii) anti-abuse rules;
(iv) attribution of production; (v) lack of
ownership requirement; (v) foreign feed-
stocks and prohibited foreign entities; and
(vi) specific recordkeeping and substanti-
ation requirements.
A. Only Registered Production in the
United States Taken into Account
As provided in section 45Z(f)(1), pro-
posed § 1.45Z-4(a) would provide that
no section 45Z credit is determined with
respect to any transportation fuel unless
the taxpayer is registered as a producer
of clean fuel (within the meaning of sec-
tion 4101) at the time of production and
the fuel is produced in the United States,
which includes any territory of the United
States. Proposed § 1.4101-1, which would
provide the registration rules under sec-
tion 4101, is further discussed in Part VII.
of this Explanation of Provisions.
B. Anti-Stacking Rules
As previously discussed in Part II.G.2.
of this Explanation of Provisions, sec-
tion 45Z(d)(4)(B) disallows a section
45Z credit for fuel produced at a facil-
ity for which an anti-stacking credit (as
defined in proposed § 1.45Z-1(b)(28)(ii))
is allowed. Proposed § 1.45Z-4(b) would
provide anti-stacking rules that would
govern the interaction between different
credits if a facility both produces transpor-
tation fuel under section 45Z and engages
in other credit-eligible activity. The pro-
posed rule also includes examples. To the
extent permitted by statute, the proposed
rule would generally preserve taxpayer
choice of which credit to claim—a section
45Z credit or an anti-stacking credit—for
a taxpayer engaging in multiple credit-el-
igible activities at the same facility in a
taxable year. For instance, a taxpayer pro-
ducing hydrogen that qualifies for both
a section 45V credit and a section 45Z
credit can generally choose which credit
to claim.
In addition to general comments on the
proposed anti-stacking rules, the Treasury
Department and the IRS request specific
comments addressing situations in which
a facility either has multiple owners or in
which a taxpayer does not own the facil-
ity, including administrative and compli-
ance issues arising under those scenarios.
Proposed § 1.45Z-4(b)(2) would pro-
vide that the determination of whether
a facility is a qualified facility is made
each taxable year. Therefore, under the
proposed rule, a facility may be a quali-
fied facility in one taxable year but not in
another taxable year. Additionally, in the
case of a taxpayer producing transporta-
tion fuel at multiple facilities, the taxpayer
would separately determine for each facil-
ity whether the fuel was produced at a
qualified facility. The proposed rules are
consistent with the anti-stacking rules in
section 45Z(d)(4)(B), which are tied to the
taxable year.
Proposed § 1.45Z-4(b)(3) would pro-
vide examples illustrating the application
of the anti-stacking rules to section 45Z
for each of the anti-stacking credits. One
example would address situations in which
the person claiming an anti-stacking credit
for a facility has a different taxable year
than the taxpayer producing transportation
fuel at that facility. The examples would
also clarify that the anti-stacking rules
apply regardless of whether the taxpayer
or another person claims an anti-stacking
credit with respect to a facility.
C. Anti-Abuse Rules
As indicated in Notice 2025-10, the
Treasury Department and the IRS are cog-
nizant of potential abuses of the section
45Z credit, including situations in which
a taxpayer produces and sells transporta-
tion fuel in a manner that is inconsistent
with Congressional intent in enacting sec-
tion 45Z. The Treasury Department and
the IRS are also concerned about other
potential abuse, such as circular produc-
tion, credit churning or wasteful produc-
tion with no intended use, and abuse of the
anti-stacking rules.
Proposed § 1.45Z-4(c) would provide
that the rules of section 45Z and the sec-
tion 45Z regulations must be applied in a
manner consistent with the purposes of
section 45Z and the section 45Z regula-
tions (and the regulations in under sec-
tions 6417 and 6418 related to the sec-
tion 45Z credit), including incentivizing
the domestic production and use of clean
transportation fuel and ensuring that tax-
payers do not circumvent the feedstock
origin and anti-stacking rules. Therefore,
the proposed rule would provide that no
section 45Z credit is determined if the pri-
mary purpose of the production and sale
of clean transportation fuel is to obtain the
benefit of the section 45Z credit in a man-
ner that is wasteful, such as discarding,
disposing of, or destroying the transporta-
tion fuel without putting it to a productive
use. The proposed rule would further pro-
vide that whether the production and sale
of transportation fuel is consistent with
the purposes of section 45Z and the sec-
tion 45Z regulations (and the regulations
in this chapter under sections 6417 and
6418 related to the section 45Z credit) is
based on all facts and circumstances.
Section 45Z(e) delegates authority to
the Secretary to issue guidance regarding
implementation of section 45Z, including
the determination of section 45Z cred-
its. Therefore, the proposed regulations
would provide general anti-abuse rules
that are consistent with the three prongs
of the section 45Z(a)(4) definition of
“sale” (referred to as a “qualified sale”
in these proposed regulations) that focus
on post-production uses of transportation
fuel.
The Treasury Department and the IRS
request comments on the need for these or

February 23, 2026 596 Bulletin No. 2026–9
additional section 45Z anti-abuse rules.
The Treasury Department and the IRS
also request comments on the potentially
abusive scenarios that should be covered
by any anti-abuse rules.
D. Production Attributable to the
Taxpayer and Section 761(a) Elections
Consistent with section 45Z(f)(2), pro-
posed § 1.45Z-4(d) would provide rules
for production attributable to the tax-
payer. For a facility in which more than
one person has an ownership interest (and
the arrangement is not classified as a part-
nership for Federal tax purposes), pro-
posed § 1.45Z-4(d)(1) would provide that
production from the facility is allocated
among those persons in proportion to their
respective ownership interests in the gross
sales from the facility. The proposed rule
would further provide that each owner’s
respective allocable share of the section
45Z credit is based on each owner’s allo-
cable share of production, determined
pursuant to section 45Z and these pro-
posed regulations. Proposed § 1.45Z-4(d)
(2) would provide an example of produc-
tion attributable to the taxpayer. Proposed
§ 1.45Z-4(d)(3) would address instances
in which a facility is owned pursuant to a
valid section 761(a) election.
E. Facility Ownership Not Required
Credit eligibility under section 45Z is
tied to production of a transportation fuel
at a qualified facility and a subsequent
qualified sale of the fuel. There is no stat-
utory requirement that the producer of the
transportation fuel own the qualified facil-
ity. Proposed § 1.45Z-4(e) would address
situations in which the producer does not
own the qualified facility at which it pro-
duces the transportation fuel, to ensure
that production is attributed fairly and
accurately in those situations.
Proposed § 1.45Z-4(e)(1) would clar-
ify that a taxpayer is not required to own
the qualified facility at which it produces
transportation fuel for a section 45Z credit
to be determined with respect to such fuel.
If a taxpayer produces transportation fuel
at a qualified facility owned by another
person, proposed § 1.45Z-4(e)(2) would
attribute that production to the taxpayer
unless otherwise specified in the Code or
the section 45Z regulations. In the case
of a production arrangement under which
multiple taxpayers produce transportation
fuel at a facility that is not owned by all the
taxpayers, production would be allocated
among the taxpayers in proportion to their
respective interests in the gross sales from
that fuel, as determined under the appli-
cable contract or other legal arrangement
with respect to the fuel.
F. Foreign Feedstock and Prohibited
Foreign Entity Restrictions
Consistent with section 45Z(f)(1)(A)
(iii), as added by section 70521(a) of the
OBBBA, proposed § 1.45Z-4(f)(1) would
provide that transportation fuel that is
produced after December 31, 2025, must
be exclusively derived from a feedstock
that was produced or grown in the United
States, Mexico, or Canada.
Consistent with section 45Z(f)(8), as
added by section 70521(k) of the OBBBA,
proposed § 1.45Z-4(f)(2) would prohibit
the determination of a section 45Z credit:
(i) for taxable years beginning after July 4,
2025, if the taxpayer is a specified foreign
entity; and (ii) for taxable years beginning
after July 4, 2027, if the taxpayer is a for-
eign-influenced entity (other than a for-
eign-influenced entity that made certain
payments to a specified foreign entity).
See section 7701(a)(51)(B) and (D) for
definitions of the terms specified foreign
entity and foreign-influenced entity.
G. Specific Recordkeeping and
Substantiation Requirements
In addition to the general recordkeep-
ing requirements under section 6001 and
§ 1.6001-1, proposed § 1.45Z-4(g) would
require a taxpayer claiming the section
45Z credit to maintain records sufficient
to establish the taxpayer’s eligibility for
the section 45Z credit and the amount of
the credit claimed. It would also provide
two safe harbors: (i) for substantiating
emissions rates with respect to non-SAF
transportation fuel; and (ii) for substanti-
ating qualified sales of transportation fuel.
The proposed recordkeeping and sub-
stantiation requirements are necessary to
ensure the accuracy of reported emissions
rates and because the amount of the sec-
tion 45Z credit may depend on certain
operational choices, such as use of certain
types of feedstocks or fuels, or engaging
in certain emissions-reduction practices
like carbon capture and sequestration
(which may vary from year to year).
1. In General
Proposed § 1.45Z-4(g)(1) would pro-
vide that at a minimum, sufficient records
include records: (i) establishing that each
fuel produced is a transportation fuel;
(ii) establishing any relevant information
relating to the primary feedstock(s) used
to produce each fuel; (iii) establishing that
each fuel meets any additional specifica-
tions for the type of fuel as described in
§ 1.45Z-1(b)(24) or (30); (iv) substantiat-
ing how the emissions rate for each fuel
was determined (including, if applicable,
the specific type(s) and category(ies)
under the applicable emissions rate table);
(v) relating to any fuel testing obtained by
the taxpayer; (vi) establishing that each
facility used to produce fuel is a quali-
fied facility; (vii) establishing the date
each facility was placed in service; (viii)
establishing that each fuel was sold in a
qualified sale; and (ix) establishing any
certification from an unrelated person and
substantiating the information contained
therein. A taxpayer must also keep all
information, including raw data, used for
or related to any petition for a PER. If a
taxpayer is claiming an increased credit
amount by satisfying the PWA require-
ments, the taxpayer must also maintain the
records described in § 1.45Z-3 (referenc-
ing § 1.45-12).
Proposed § 1.45Z-4(g)(2) would pro-
vide a safe harbor for substantiating the
emissions rate for a non-SAF transpor-
tation fuel that was determined using
the 45ZCF-GREET model. A taxpayer
relying on this safe harbor would need
to obtain certification in substantially the
same form and manner described in pro-
posed § 1.45Z-5 (related to certification
for a SAF transportation fuel) with respect
to that non-SAF transportation fuel. The
proposed § 1.45Z-5 certification require-
ments are discussed in Part V. of this
Explanation of Provisions.
Proposed § 1.45Z-4(g)(3)(i) would
provide a safe harbor for substantiating
whether the sale of a transportation fuel
is a qualified sale for purposes of section

Bulletin No. 2026–9 597 February 23, 2026
45Z. A taxpayer relying on this safe harbor
would need to obtain from the purchaser a
certificate prepared by the purchaser under
penalty of perjury in substantially the
same form and manner as that described
in proposed § 1.45Z-4(g)(3)(ii). Proposed
§ 1.45Z-4(g)(3)(ii) would include a model
certificate that a taxpayer may use for pur-
poses of meeting this safe harbor. If the
certificate relates to a single purchase, the
taxpayer must obtain the certificate from
the purchaser prior to or at the time of
sale. If the certificate relates to purchases
made over a period of time, the taxpayer
must obtain the certificate from the pur-
chaser prior to or at the same time as the
initial sale to which the certificate relates.
The safe harbor would require that a tax-
payer have no reason to believe that any
information in the certificate regarding the
use of the transportation fuel is false. The
safe harbor would also require a taxpayer
to maintain the certificate with respect to
the sale of transportation fuel in its books
and records.
Additionally, the Treasury Department
and the IRS request comments on what
types of documentation or other sub-
stantiation a taxpayer should maintain to
establish: proper determination of a fuel’s
emissions rate, including the inputs into
CORSIA Default, CORSIA Actual, or the
45ZCF-GREET model; certification from
an unrelated person for non-SAF trans-
portation fuel; existing systems, industry
standards, or customary practices that may
be used to substantiate emissions rate and
inputs into CORSIA Default, CORSIA
Actual, or the 45ZCF-GREET model (or
if there are none, how such tracking and
verification systems should be developed,
with potential timelines regarding devel-
opment).
2. Foreign Feedstocks Including Used
Cooking Oil
As explained in Notice 2025-10, the
Treasury Department and the IRS remain
concerned about the ability to reliably dis-
tinguish between imported used cooking
oil (UCO) and palm oil, and the resulting
risk of crediting ineligible fuels. Further-
more, section 45Z(f)(1)(A)(ii) provides
that transportation fuel that is produced
after December 31, 2025, must be exclu-
sively derived from a feedstock that was
produced or grown in the United States,
Mexico, or Canada. As previously dis-
cussed in Part IV.F. of this Explanation
of Provisions, proposed § 1.45Z-4(f)(1)
would implement this statutory change.
Consistent with this approach, path-
ways that use foreign feedstocks (includ-
ing UCO) for fuel produced after Decem-
ber 31, 2025, will not be available in the
45ZCF-GREET model until the Treasury
Department and the IRS publish further
guidance. A feedstock is considered a
foreign feedstock if it originates from a
source (for example, a farm, restaurant, or
food processor) and/or is purchased from
an aggregator located outside the United
States, Canada, or Mexico.
The Treasury Department and the IRS
are considering appropriate substantiation
and recordkeeping requirements for feed-
stocks imported from Canada and Mexico
(including UCO), and request comments
on possible approaches with respect to
substantiating that any imported feed-
stocks meet the statutory sourcing require-
ment. The Treasury Department and the
IRS are also interested in any industry
practices to track feedstock source(s) that
would mitigate potential taxpayer burden
while being administrable for the IRS. For
example, whether using specific exist-
ing business records, a taxpayer could
demonstrate that feedstocks exclusively
produced in Canada or Mexico did not
contain other feedstocks or additives that
originated outside of Canada or Mexico.
The Treasury Department and the IRS
also request comments on purchases from
aggregators of UCO and approaches to
determine the underlying source(s) of the
UCO that are administrable for taxpayers
and the IRS. The Treasury Department
and the IRS request comments on, for
instance, whether there are reliable meth-
ods that would indicate the geographic
location where seeds originated or crops
were grown as a precursor for use as cook-
ing oil, which could be used to determine
whether the foreign feedstock limitation
in section 45Z(f)(1)(A)(iii) applies.
V. Procedures for Certification of
Lifecycle Greenhouse Gas Emissions
Rates
Proposed § 1.45Z-5 would provide
rules for certification from an unrelated
person of emissions rates for SAF trans-
portation fuel (certification). The rules
would describe the content, form, and
manner of the required certification under
section 45Z(f)(1)(A)(i)(II). Proposed
§ 1.45Z-5(b) through (f) would provide
rules relating to the content of the certi-
fication. Proposed § 1.45Z-5(g) would
describe the requirements for timely cer-
tification. Proposed § 1.45Z-5(h) would
provide a model certification.
A. Requirements for Certifications
1. In General
In general, proposed § 1.45Z-5(b)(1)
would provide that for each taxable year
for which a taxpayer claims a section 45Z
credit for SAF transportation fuel, the tax-
payer must obtain a certification from an
unrelated person and include such certi-
fication with the taxpayer’s Form 7218,
which is filed with the taxpayer’s Federal
income tax return or Federal information
return, for each qualified facility at which
the taxpayer produces SAF transportation
fuel.
Proposed § 1.45Z-5(b)(2) would pro-
vide that the certification described in pro-
posed § 1.45Z-5(b)(1) must be prepared by
a qualified certifier (as defined in proposed
§ 1.45Z-5(b)(3)) and signed by the qualified
certifier under penalty of perjury. Proposed
§ 1.45Z-5(b)(2) would further provide that
the certification must include information
that is in substantially the same form as the
model certification provided in proposed
§ 1.45Z-5(h). Proposed § 1.45Z-5(b)(2)
(i) through (vi) would describe the follow-
ing information that a certification must
contain: (i) a statement from the qualified
certifier regarding the production of SAF
transportation fuel (production statement);
(ii) a statement from the qualified certi-
fier regarding conflicts of interest (conflict
statement); (iii) information regarding the
qualified certifier, including documentation
of the qualified certifier’s qualifications
(qualified certifier statement); (iv) certain
general information about the qualified
facility at which the SAF transportation
fuel production undergoing certification
occurred (qualified facility statement); (v)
any documentation necessary to substan-
tiate the certification process given the
standards and best practices prescribed by

February 23, 2026 598 Bulletin No. 2026–9
the qualified certifier’s accrediting body
as they apply to the circumstances of the
taxpayer and the qualified facility; and (vi)
any other information or documentation
required by applicable IRS tax forms or
form instructions.
2. Production Statement
Proposed § 1.45Z-5(c)(1) would pro-
vide that the production statement must
state that the qualified certifier performed
a certification sufficient for the IRS to
determine that any lifecycle GHG emis-
sions data inputs and the operation, during
the applicable taxable year, of the qualified
facility that produced the SAF transporta-
tion fuel for which the section 45Z credit
is claimed are accurately reflected in: (i)
the number of gallons of SAF transporta-
tion fuel produced by the taxpayer that is
entered on the Form 7218 with which the
certification is included; and (ii) either the
data the taxpayer input into the allowed
methodology under proposed § 1.45Z-
2(e)(3), or the data the taxpayer submitted
in its PER petition and that was provided
to the DOE in support of the taxpayer’s
request for the emissions value provided
in the PER petition.
Proposed § 1.45Z-5(c)(2) would pro-
vide that, if a taxpayer submitted a PER
petition, then the production statement
must also specify the emissions value
received from the DOE that was calcu-
lated using the data provided in support
of the taxpayer’s emissions value request.
Proposed § 1.45Z-5(c)(3) would pro-
vide that the production statement must
specify the lifecycle GHG emissions rate
and the amount of SAF transportation fuel
produced by the taxpayer that are entered
on the Form 7218 with which the certifica-
tion is included.
3. Conflict Statement
Proposed § 1.45Z-5(d)(1) would pro-
vide that the conflict statement must state
that: (i) the qualified certifier has not
received a fee based to any extent on the
value of any section 45Z credit that has
been or is expected to be claimed by the
taxpayer, and no arrangement has been
made for such fee to be paid at any time
in the future; (ii) the qualified certifier has
not been a party to any transaction involv-
ing the sale of SAF transportation fuel the
taxpayer produced or in which the tax-
payer purchased primary feedstocks for
the production of such SAF transportation
fuel; (iii) the qualified certifier is unrelated
to the taxpayer and is not an employee of
the taxpayer; and (iv) the qualified certi-
fier is not married to anyone who is related
to, or an employee of, the taxpayer.
Proposed § 1.45Z-5(d)(2) would pro-
vide that if the qualified certifier is acting in
his or her capacity as a partner in a partner-
ship, an employee of any person, whether
an individual, corporation, or partnership,
or an independent contractor engaged by
a person other than the taxpayer, the state-
ments described in proposed § 1.45Z-5(d)
(1) must also be made with respect to the
partnership or the person that employs or
engages the qualified certifier.
4. Qualified Certifier Statement
Proposed § 1.45Z-5(e) would provide
that the qualified certifier statement must
include: (i) the qualified certifier’s name,
address, and certifier identification number;
(ii) the qualified certifier’s qualifications
to conduct the certification, including a
description of the certification the qualified
certifier received from the accrediting body;
(iii) if the qualified certifier is acting in his
or her capacity as a partner in a partner-
ship, an employee of any person, whether
an individual, corporation, or partnership,
or an independent contractor engaged by a
person other than the taxpayer, the name,
address, and certifier identification num-
ber of the partnership or the person that
employs or engages the qualified certifier;
(iv) the signature of the qualified certifier
and the date of signature; and (v) a state-
ment that the certification was conducted
for Federal tax purposes.
5. Information on Taxpayer’s Qualified
Facility
Proposed § 1.45Z-5(f) would pro-
vide that the certification must include:
(i) the location of the qualified facility;
(ii) a description of the qualified facility,
including its method of producing SAF
transportation fuel; (iii) the type(s) of pri-
mary feedstock(s) used by the qualified
facility to produce the SAF transportation
fuel during the taxable year of production;
(iv) the amount(s) of primary feedstock(s)
used by the qualified facility to produce
the SAF transportation fuel during the tax-
able year of production; (v) the location(s)
from which the qualified facility sourced
the primary feedstock(s) used to produce
the SAF transportation fuel during the tax-
able year of production; (vi) a list of the
metering devices used to record any data
used by the qualified certifier to support
the production statement under proposed
§ 1.45Z-5(c), along with a statement that
the qualified certifier has reason to believe
that the device(s) underwent industry-ap-
propriate quality assurance and quality
control, and the accuracy and calibration
of the device has been tested in the year
prior to the time of observation; and (vii)
confirmation that the emissions rate of the
SAF transportation fuel produced during
the taxable year of production is accurate
to the higher of +/-5% or 2 kilograms of
CO
2
e per mmBTU.
B. Qualified Certifier
Proposed § 1.45Z-5(b)(3) would pro-
vide rules regarding qualified certifiers for
the allowed methodologies. A qualified
certifier would be required to have the rel-
evant active accreditation as of the date it
provides a certification to a taxpayer.
1. CORSIA Methodologies
Proposed § 1.45Z-5(b)(3)(i) would
provide that, for taxpayers using CORSIA
Default or CORSIA Actual to determine
the emissions rate for SAF transportation
fuel, the term qualified certifier means any
individual or organization that is unrelated
to the taxpayer and is not an employee of
the taxpayer, and that has an active accred-
itation from International Sustainability
and Carbon Certification, Roundtable on
Sustainable Biomaterials, ClassNK, or
other sustainability certification scheme
approved by ICAO. Such individuals or
organizations are experienced and famil-
iar with evaluating information regarding
CORSIA Default and CORSIA Actual.
2. 45ZCF-GREET Model
Proposed § 1.45Z-5(b)(3)(ii) would
provide that, for taxpayers using the
45ZCF-GREET model to determine the

Bulletin No. 2026–9 599 February 23, 2026
emissions for SAF transportation fuel, the
term qualified certifier means any individ-
ual or organization that is unrelated to the
taxpayer and is not an employee of the tax-
payer, and that has an active accreditation
from: (i) the American National Standards
Institute National Accreditation Board
(ANAB) to conduct validation and ver-
ification in accordance with the require-
ments of International Organization for
Standardization (ISO) 14065; or (ii) as a
verifier, lead verifier, or verification body
under the California Air Resources Board
Low Carbon Fuel Standard (CARB LCFS)
program. Such ANAB and CARB LCFS
verifiers are experienced with evaluating
information similar to the information
included in the 45ZCF-GREET model.
C. Timely Certification Required
Proposed § 1.45Z-5(g) would pro-
vide that a certification that includes all
required information is valid with respect
to a particular claim only if it is signed
and dated by the qualified certifier no later
than: (i) the due date, including exten-
sions, of the Federal income tax return or
Federal information return for the taxable
year during which the SAF transportation
fuel undergoing certification is sold in a
qualified sale; or (ii) in the case of a sec-
tion 45Z credit first claimed for the tax-
able year on an amended return or admin-
istrative adjustment request (AAR), the
date on which the amended return or AAR
is filed.
VI. Procedures for Filing a Claim for
the Clean Fuel Production Credit
Proposed § 1.45Z-6 would describe the
time and manner of filing a claim for the
section 45Z credit and provide special rules
for cases in which the taxpayer claiming
the credit is not the registered producer of
a transportation fuel. Under the proposed
rule, a taxpayer claiming a section 45Z
credit would either be the person registered
as a producer of a transportation fuel at the
time of production, or a person that would
be treated as the registrant.
A. Time and Manner of Filing a Claim
In general, proposed § 1.45Z-6(a)
would provide that a taxpayer claims the
section 45Z credit on a completed Form
7218 included with the taxpayer’s timely
filed (including extensions) Federal
income tax return or Federal information
return for the taxable year for which the
taxpayer claims the section 45Z credit.
Under proposed § 1.45Z-6(a), a taxpayer
would need to complete a separate Form
7218 for each qualified facility at which it
produces a transportation fuel for which it
is claiming a credit.
B. Proper Claimant
Proposed § 1.45Z-6(b)(1) would pro-
vide the general rule that only a taxpayer
that is registered by the IRS as a producer
of transportation fuel at the time of pro-
duction may claim the section 45Z credit.
Proposed § 1.45Z-6(b)(2)(i) through
(iii) would provide special rules for sit-
uations in which a person other than a
registered producer of transportation fuel
may claim the section 45Z credit. These
special rules would generally apply to:
(i) a taxpayer that owns an entity that is
disregarded as an entity separate from its
owner, as defined in § 301.7701-2(c)(2)
(i) (disregarded entity); (ii) an S corpora-
tion (as defined in section 1361(a)(1)) that
owns a qualified subchapter S subsidiary
(QSub), as defined in section 1361(b)(3)
(B); and (iii) an agent for a consolidated
group, as defined in § 1.1502-77. The
proposed rules are consistent with the
section 45Z Fact Sheet FAQs but provide
additional specificity and clarity.
Proposed § 1.45Z-6(b)(2)(i) would pro-
vide that in the case of a disregarded entity
that produces transportation fuel and is
registered as a producer of transportation
fuel at the time of production, the taxpayer
that owns the disregarded entity is treated
as the registered producer for purposes of
claiming the section 45Z credit.
Proposed § 1.45Z-6(b)(2)(ii) would
provide that in the case of a QSub that pro-
duces transportation fuel and is registered
as a producer of transportation fuel at the
time of production, the S corporation that
owns the QSub is treated as the registered
producer for purposes of claiming the sec-
tion 45Z credit.
Proposed § 1.45Z-6(b)(2)(iii) would
clarify that if a member of a consoli-
dated group is registered as a producer
of transportation fuel at the time of pro-
duction, the agent for such consolidated
group is treated as the registered pro-
ducer for purposes of claiming the sec-
tion 45Z credit.
VII. Section 4101 Registration
A. Section 4101 Registration Generally
Proposed § 1.4101-1 would provide
rules for section 4101 registration for
purposes of section 45Z, including rules
addressing disregarded entities, QSubs,
and members of a consolidated group,
and the registration tests for purposes of
section 45Z(f)(1)(A)(i)(I). The proposed
rules are modeled after the longstanding
registration rules in § 48.4101-1 of the
Manufacturers and Retailers Excise Tax
Regulations that apply for purposes of
fuel excise taxes and credits. This reg-
istration requirement is distinct from the
required pre-filing registration for a tax-
payer that intends to make a section 6417
or section 6418 election, as provided by
the Credit Transfer Election Regulations
and the Elective Payment Election Reg-
ulations.
Proposed §§ 1.4101-1(a)(4) and
48.4101-1(a)(8) would provide rules for
reregistration. Proposed §§ 1.4101-1(h)
and 48.4101(a)(7) would provide rules
regarding the effect of a Letter of Regis-
tration for purposes of section 45Z and
excise tax registrations, respectively.
Proposed § 1.4101-1 would provide
rules regarding the approval, denial, revo-
cation, or suspension of registration that
are similar to the rules of section 4222(c)
and § 48.4222(c)-1. Additionally, many of
the requirements of proposed § 1.4101-1
would be similar or identical to the exist-
ing provisions of § 48.4101-1 and to pro-
posed § 48.4101-1(a)(7) and (8), which
would facilitate consistent tax adminis-
tration. The Treasury Department and the
IRS are aware that many applicants for
registration for purposes of the section
45Z credit and other income tax credits
must also be registered under section 4101
for excise tax purposes. As a result, many
applicants are already familiar with the
section 4101 registration process and must
maintain other section 4101 registrations
(in addition to the registration required
under section 45Z(f)(1)(A)(i)(I) and other
income tax registrations).

February 23, 2026 600 Bulletin No. 2026–9
B. Letter of Registration Required
Proposed § 1.4101-1(a)(2) would pro-
vide that a person is registered under sec-
tion 4101 only if the IRS has issued that
person a Letter of Registration under the
appropriate activity letter and the registra-
tion has not been revoked or suspended.
This proposed rule is similar to § 48.4101-
1(a)(2).
C. Separate Entity Treatment
Proposed § 1.4101-1(a)(3)(i) would
provide that each business unit that has,
or is required to have, a separate EIN is
treated as a separate person for purposes
of registration. Proposed § 1.4101-1(a)(3)
(ii) would provide that § 301.7701-2(c)
(2)(i) (disregarded entity treatment for
certain wholly owned entities) does not
apply for purposes of registration under
proposed § 1.4101-1. Under the proposed
rule, a disregarded entity that has, or is
required to have, an EIN would be treated
as a corporation for purposes of registra-
tion. Therefore, under the proposed rule,
if such an entity produces transportation
fuel, it must be registered as a producer
of transportation fuel at the time of pro-
duction for the owner of the disregarded
entity to be eligible to claim the section
45Z credit for such fuel.
Proposed § 1.4101-1(a)(3)(iii) would
provide that a QSub is treated as a sep-
arate corporation for purposes of regis-
tration under proposed § 1.4101-1. As a
consequence, each QSub that has an EIN
and that produces transportation fuel must
be registered as a producer of transpor-
tation fuel at the time of production for
its S corporation owner to be eligible to
claim the section 45Z credit for such fuel.
For consistency and clarity, the proposed
regulations would also amend the intro-
ductory clause of § 1.1361-4(a)(1) (which
generally ignores a QSub’s separate exis-
tence for Federal tax purposes) by adding
proposed § 1.4101-1(a)(3)(iii) to the list of
exceptions.
The Treasury Department and the IRS
understand that many facilities that pro-
duce transportation fuel are owned by a
disregarded entity. The proposed regu-
lations would provide registration rules
that would reflect this practice while also
satisfying the statutory requirements. The
proposed rules would be similar to and
consistent with: (i) § 48.4101-1(a)(4),
which provides that every business that
has, or is required to have, a separate EIN
is treated as a separate person for pur-
poses of excise tax registration under sec-
tion 4101; (ii) § 301.7701-2(c)(2)(v)(A)
(3), which provides that § 301.7701-2(c)
(2)(i) (concerning certain wholly-owned
entities) does not apply for purposes of
registration under sections 4101, 4222,
and 4412; and (iii) § 1.1361-4(a)(8)(i)(C),
which provides that a QSub is treated as a
separate corporation for purposes of reg-
istration under sections 4101, 4222, and
4412.
The separate entity rules would also
align with other related tax provisions,
including sections 45V and 45Q (for which
anti-stacking provisions apply), and the
elective payment and credit transfer elec-
tion provisions of sections 6417 and 6418,
which elections are generally made on a
per-facility basis. Although the proposed
rules are consistent with the making of a
section 6417 or section 6418 election on
a facility-by-facility basis, it is important
to highlight the difference between these
proposed registration rules and the rules
for making an election under section 6417
or section 6418.
With respect to sections 6417 and
6418, if a taxpayer is the sole owner
(directly or indirectly) of a disregarded
entity for Federal income tax purposes
and the disregarded entity directly holds
the underlying applicable credit prop-
erty, then the taxpayer (and not the disre-
garded entity) makes the section 6417 or
section 6418 election, including complet-
ing the required pre-filing registration as
part of making a section 6417 or section
6418 election. See §§ 1.6417-2(a)(1)(ii),
1.6417-5, 1.6418-2(a)(3)(i), and 1.6418-
4. For example, if a taxpayer has two
qualified facilities for purposes of sec-
tion 45Z that are owned by separate dis-
regarded entities, each disregarded entity
(and not the taxpayer) must be registered
as a producer of transportation fuel for
purposes of the section 45Z credit. How-
ever, the taxpayer (and not either disre-
garded entity) would ultimately make
any section 6417 or section 6418 election
(including completing the section 6417
or section 6418 pre-filing registration
process) with respect to any section 45Z
credit determined with respect to each
qualified facility.
Additionally, section 45Z(f)(1)(A)(i)
(I) requires registration “under section
4101.” This language indicates that Con-
gress meant for the existing § 48.4101-1
regulations to apply for purposes of the
section 45Z credit, including the separate
entity rules of § 48.4101-1(a)(4). The spe-
cial procedures that apply with respect to a
taxpayer that owns a disregarded entity or
a QSub that is registered under proposed
§ 1.4101-1 and claims the section 45Z
credit are discussed in Part VI.B. of this
Explanation of Provisions.
D. Reregistration
As provided in section 4101(a)(5), pro-
posed §§ 1.4101-1(a)(4)(i) and 48.4101-
1(a)(8)(i) would each require a person to
reregister if after a transaction (or series
of related transactions) more than 50 per-
cent of ownership interests in, or assets of,
such person are held by persons other than
persons (or persons related thereto) who
held more than 50 percent of such inter-
ests or assets before the transaction (or
series of related transactions). Reregistra-
tion would not apply to companies whose
stock is regularly traded on an established
securities market. These proposed require-
ments would be consistent with section
4101(a)(5) and (d).
Proposed §§ 1.4101-1(a)(4)(ii) and
48.4101-1(a)(8)(ii) would each require a
person to reregister if the person changes
its EIN.
Proposed § 1.4101-1(a)(4)(iii) would
provide a safe harbor for a person that
has been registered by the IRS and must
reregister due to a change in ownership
or EIN. A person that is approved for
reregistration would be eligible to claim
a section 45Z credit as of the date the
IRS received the application for reregis-
tration, even if, at the time of such per-
son’s fuel production, the IRS had not yet
approved the reregistration. The Trea-
sury Department and the IRS recognize
the urgency for a taxpayer to be issued
a Letter of Registration for purposes of
the section 45Z credit because, unlike
other tax credits requiring section 4101
registration, section 45Z(f)(1)(A)(i)(I)
requires that a taxpayer be registered at
the time of production.

Bulletin No. 2026–9 601 February 23, 2026
E. Definitions
Proposed § 1.4101-1(b)(1) would
define an “applicant” as a person that has
applied for registration under proposed
§ 1.4101-1(d). The proposed definition is
consistent with the definition of “appli-
cant” in § 48.4101-1(b)(1).
Proposed § 1.4101-1(b)(2) would
define “Letter of Registration” as a letter
issued by the IRS to approve a registra-
tion required under section 4101. Under
the proposed definition, a Letter of Regis-
tration would include the registrant’s reg-
istration number and the effective date of
the registration.
Proposed § 1.4101-1(b)(3) would
define the phrase “penalized for a wrong-
ful act” as cases in which a person has: (i)
been assessed any penalty under chapter
68 of the Code (or similar provision of
the law of any State) for fraudulently fail-
ing to file any return or pay any tax, and
the penalty has not been wholly abated,
refunded, or credited; (ii) been assessed
any penalty under chapter 68 of the
Code, such penalty has not been wholly
abated, refunded, or credited, and the IRS
determines that the conduct resulting in
the penalty is part of a consistent pattern
of failing to deposit, pay, or pay over a
substantial amount of tax; (iii) been con-
victed of a crime under chapter 75 of the
Code (or similar provision of the law of
any State), or of conspiracy to commit
such a crime, and the conviction has not
been wholly reversed by a court of com-
petent jurisdiction; (iv) been convicted,
under the laws of the United States or
any State, of a felony for which an ele-
ment of the offense is theft, fraud, or the
making of false statements, and the con-
viction has not been wholly reversed by a
court of competent jurisdiction; (v) been
assessed any tax under section 4103 of
the Code and the tax has not been wholly
abated, refunded, or credited; or (vi) had
its registration under section 4101, sec-
tion 4222, section 4662, or section 4682
of the Code revoked. This proposed defi-
nition is similar to the definition of the
phrase “penalized for a wrongful act” in
§ 48.4101-1(b)(4).
Proposed § 1.4101-1(b)(4) would
define a “related person” for purposes of
registration under section 4101 as a per-
son that: (i) directly or indirectly exercises
control over an activity of the applicant;
(ii) owns, directly or indirectly, five per-
cent or more of the applicant; (iii) is
under a duty to assure the payment of a
tax for which the applicant is responsi-
ble; (iv) is a member, with the applicant,
of a group of organizations (as defined in
§ 1.52-1(b) of this chapter) that would be
treated as a group of trades or businesses
under common control for purposes of
§ 1.52-1; or (v) distributed or transferred
assets to the applicant in a transaction in
which the applicant’s basis in the assets
is determined by reference to the basis of
the assets in the hands of the distributor
or transferor. This proposed definition is
consistent with the definition of “related
person” in § 48.4101-1(b)(5).
Proposed § 1.4101-1(b)(5) would
define a “registrant” as a person who has
registered under section 4101 in accor-
dance with proposed § 1.4101-1(f)(3) and
whose registration has not been revoked
or suspended. This proposed definition is
consistent with the definition of “regis-
trant” in § 48.4101-1(b)(6).
F. Requirement to Register
Proposed § 1.4101-1(c)(1) would
require every person producing a trans-
portation fuel, as defined in proposed
§ 1.45Z-1(b)(34), to register with the IRS
in accordance with proposed § 1.4101-1.
The proposed rule incorporates the reg-
istration requirement described in sec-
tion 4101(a)(1), as amended by section
70521(i) of the OBBBA, and is similar to
§ 48.4101-1(c)(1). The proposed rule is
also consistent with section 45Z(f)(1)(A)
(i)(I).
Proposed § 1.4101-1(c)(2) would artic-
ulate the consequences of failing to regis-
ter under section 4101 by citing to penal-
ties under sections 6719, 7232, and 7272
of the Code. The proposed rule is similar
to § 48.4101-1(c)(3), which was published
before the enactment of section 6719 and
cites to penalties under sections 7232 and
7272. Section 7232 imposes a criminal
penalty for failure to register or reregister
as required by section 4101 or for a willful
false statement in an application for reg-
istration or reregistration. Sections 6719
and 7272 impose civil penalties for fail-
ure to register or reregister under section
4101.
G. Application Instructions
Proposed § 1.4101-1(d) would require
applicants to apply for section 4101 reg-
istration using Form 637, Application
for Registration (For Certain Excise Tax
Activities), or such other form as the IRS
may designate, in accordance with the
instructions to such form. An applicant
would be required to apply for registration
under activity letter CN if seeking regis-
tration as a producer of non-SAF transpor-
tation fuel, and under activity letter CA if
seeking registration as a producer of SAF
transportation fuel, or under such other
activity letter(s) as the IRS may desig-
nate. The proposed rule is consistent with
§§ 48.4101-1(e) and 48.4222(a)-1(b).
H. Registration Tests
Proposed § 1.4101-1(e)(1) would pro-
vide that the IRS will register an applicant
only if the applicant meets the activity test
of proposed § 1.4101-1(e)(2), the accept-
able risk test of proposed § 1.4101-1(e)
(3), and the satisfactory tax history test
of proposed § 1.4101-1(e)(4), which are
collectively called the “registration tests.”
The registration tests under proposed
§ 1.4101-1(e) are similar to the registra-
tion tests under § 48.4101-1(f).
The proposed registration tests are con-
sistent with sections 4101(c) and 4222(c),
because their purposes are to confirm
whether an applicant is actually engaging
in the activity for which it is requesting
to be registered, to prevent an applicant
from becoming registered and being able
to claim a tax credit if it is not engaged
in such an activity, and to ensure that an
applicant has satisfied all of its tax obli-
gations under the Code, similar to sec-
tion 4222(c) and §§ 48.4222(a)-1 and
48.4222(c)-1. These tests are necessary to
protect the revenue and to prevent appli-
cants from using their registration to avoid
payment of tax (by erroneously claiming
an income tax credit).
1. Activity Test
Under proposed § 1.4101-1(e)(2), an
applicant would meet the activity test only
if the IRS determines that the applicant:
(i) is, in the course of its trade or busi-
ness, regularly engaged in the activity for

February 23, 2026 602 Bulletin No. 2026–9
which it is requesting registration; or (ii)
is likely to be (because of such factors
as the applicant’s business experience,
financial standing, or trade connections),
in the course of its trade or business, reg-
ularly engaged in the activity for which it
is requesting registration within 6 months
after becoming registered under section
4101. Proposed § 1.4101-1(e)(2) is similar
to § 48.4101-1(f)(2).
The purpose of the activity test is to pre-
vent applicants that are not engaged in the
activity required for the section 45Z credit
from becoming registered under section
4101, which is a prerequisite to claiming
the section 45Z credit. For example, if an
applicant seeking registration for purposes
of the section 45Z credit represents on its
application for registration that it is not yet
(or likely to be within 6 months) engaged
in the activity of producing a transpor-
tation fuel, such applicant would not be
approved for registration because it fails
the activity test.
2. Acceptable Risk Test
Under proposed § 1.4101-1(e)(3)(i),
an applicant would meet the acceptable
risk test only if neither the applicant nor
a related person (as defined in proposed
§ 1.4101-1(b)(4)) has been penalized for
a wrongful act. Additionally, if an appli-
cant or a related person has been penal-
ized for a wrongful act, the IRS would be
able to determine that an applicant meets
the acceptable risk test based on consid-
eration of the factors enumerated in pro-
posed § 1.4101-1(e)(3)(ii). The acceptable
risk test under proposed § 1.4101-1(e)(3)
is similar to the acceptable risk test under
§ 48.4101-1(f)(3).
The purpose of the acceptable risk
test under proposed § 1.4101-1(e)(3) is
to ensure that the applicant and persons
related to the applicant have met their obli-
gations to pay taxes and file returns under
the Code and also have not been convicted
of a crime that indicates that the applicant
would be dishonest in its representations
to the IRS for purposes of protecting the
revenue, similar to section 4222(c).
3. Satisfactory Tax History Test
Proposed § 1.4101-1(e)(4)(i) would
provide that an applicant meets the satis-
factory tax history only if the IRS deter-
mines that the applicant has a satisfactory
tax history. Proposed § 1.4101-1(e)(4)(ii)
would provide that an applicant has a sat-
isfactory tax history only if the IRS deter-
mines that the filing, deposit, and payment
history for all Federal taxes of the appli-
cant and any related person (as defined in
proposed § 1.4101-1(b)(4)) supports the
conclusion that the applicant will com-
ply with its obligations under proposed
§ 1.4101-1. Proposed § 1.4101-1(e)(4)
is similar to the adequate security test
of § 48.4101-1(f)(4), and the definition
of “satisfactory tax history” in proposed
§ 1.4101-1(e)(4)(ii) is similar to the defi-
nition in § 48.4101-1(f)(4)(iii).
The purpose of the satisfactory tax
history test under proposed § 1.4101-
1(e)(4) is to ensure that the applicant
and persons related to the applicant have
met their obligations to pay taxes and file
returns under the Code and also have not
been convicted of a crime that indicates
that the applicant would be dishonest in
its representations to the IRS for pur-
poses of protecting the revenue, similar
to section 4222(c).
I. Action on Application by the IRS
Proposed § 1.4101-1(f)(1) would pro-
vide that the IRS may investigate the
accuracy and completeness of any rep-
resentations made by an applicant and
request any additional relevant infor-
mation from the applicant. Proposed
§ 1.4101-1(f)(2) would provide that if the
IRS determines that an applicant does not
meet all the registration tests described
in proposed § 1.4101-1(e), the IRS will
notify the applicant, in writing, that its
application for registration is denied and
state the basis for the denial. Proposed
§ 1.4101-1(f)(3) would provide that if the
IRS determines that an applicant meets
all the registration tests described in pro-
posed § 1.4101-1(e), the IRS will register
the applicant under section 4101 and issue
the applicant a Letter of Registration that
includes the effective date of the registra-
tion and the appropriate activity letter(s).
The proposed rule would also provide that
a copy of an application for registration
(Form 637) is not a Letter of Registra-
tion. Proposed § 1.4101-1(f) is similar to
§ 48.4101-1(g).
J. Terms and Conditions of Registration
Proposed § 1.4101-1(g)(1) would
require each applicant or registrant to: (i)
make deposits, file returns, and pay taxes
required by the Code and the regulations;
(ii) keep records sufficient to show pro-
duction of a transportation fuel; and (iii)
notify the IRS of any change (such as a
change in ownership) in the informa-
tion the registrant submitted in connec-
tion with its application for registration
or previously submitted under proposed
§ 1.4101-1(g)(1)(iii), within 10 days after
the change occurs. Proposed § 1.4101-
1(g)(1) is similar to § 48.4101-1(h)(1).
Proposed § 1.4101-1(g)(2) would pro-
vide that an applicant or registrant may
not sell, lease, or otherwise allow another
person to use its registration (except as
otherwise provided in proposed § 1.45Z-
6(b)(2)) or make any false statement to
the IRS in connection with a submission
under section 4101. Proposed § 1.4101-
1(g)(2) is similar to § 48.4101-1(h)(2).
Requiring registrants to comply with
their tax deposits, payments, and fil-
ing burdens under the Code protects the
revenue, similar to section 4222(c) and
§ 48.4222(c)-1. Requiring registrants to
notify the IRS of any change in informa-
tion that the registrant submitted in con-
nection with its application ensures the
IRS is aware of relevant changes and can
ensure the registrant continues to be eligi-
ble to retain its registration.
For example, if a registrant that pro-
duces a transportation fuel changes the
type of fuel it produces, the registrant
should inform the IRS of this change so
that the IRS can review the fuel being
produced to ensure that the registrant still
meets a condition of registration by pro-
ducing a transportation fuel. Prohibiting a
registrant from allowing another person to
use its registration and make false state-
ments to the IRS ensures that the IRS can
rely upon the information and representa-
tions provided by a registrant, and protects
the revenue by preventing fraud and abuse
of section 4101 registration.
K. Effect of Letter of Registration
Proposed § 1.4101-1(h) and proposed
§ 48.4101-1(a)(7) would provide that a
Letter of Registration is not a determina-

Bulletin No. 2026–9 603 February 23, 2026
tion of liability for tax, eligibility for a tax
credit or deduction, or any other tax treat-
ment under the Code. The proposed rules
would also provide that a Letter of Reg-
istration is not a determination letter, as
defined in § 601.201(a)(3) of this chapter.
The proposed rules are consistent
with section 4101 and the overall stat-
utory scheme. Section 4101 addresses
only registration and not eligibility for
underlying tax credits for which regis-
tration is required. Additionally, for each
tax credit that requires registration under
section 4101, registration is one of mul-
tiple requirements for credit eligibility.
A taxpayer must meet all of the statutory
requirements for each credit and cannot
rely solely on a Letter of Registration to
prove entitlement to such credit because
doing so would make the other require-
ments in the tax credit statutes superflu-
ous. See, e.g., sections 40(b)(6)(E), 40A,
40B, 45Z, and 6426(k). Additionally, in
the case of excise tax credits, courts have
held that a Letter of Registration indicates
only that the registrant is registered under
section 4101 and is not a determination
that the registrant is entitled to claim such
credit. See Affordable Bio Feedstock, Inc.
v. United States, 529 F. Supp. 3d 1298,
1304-07 (M.D. Fla. 2021), aff’d, 42 F.4th
1288 (11th Cir. 2022).
L. Adverse Actions by the IRS Against a
Registrant
Proposed § 1.4101-1(i)(1) would pro-
vide that the IRS will revoke or suspend
a registration if the IRS determines at any
time that the registrant: (i) does not meet
one or more of the registration tests under
proposed § 1.4101-1(e) and has not cor-
rected the deficiency within a reasonable
period of time after notification by the
IRS; (ii) has used its registration to evade,
or attempt to evade, the payment of any
tax, or to postpone or in any manner to
interfere with the collection of any such
tax, or to make a fraudulent claim for a
credit or payment; (iii) has aided or abet-
ted another person in evading, or attempt-
ing to evade, payment of any tax, or in
making a fraudulent claim for a credit or
payment; or (iv) has sold, leased, or oth-
erwise allowed another person to use its
registration, except as otherwise provided
in proposed § 1.45Z-6(b)(2).
Proposed § 1.4101-1(i)(2) would pro-
vide that if the IRS determines that a reg-
istrant has, at any time, failed to comply
with the terms and conditions of registra-
tion under proposed § 1.4101-1(g), made
a false statement to the IRS in connection
with its application for registration (or
reregistration) or for retention of registra-
tion, or otherwise used its registration in
a manner that creates a significant risk of
nonpayment or late payment of tax, then
the IRS may revoke or suspend the regis-
trant’s registration.
Proposed § 1.4101-1(i)(3) would pro-
vide that if the IRS revokes or suspends a
registration, the IRS will notify the regis-
trant in writing and state the basis for the
revocation or suspension and the activity
letter(s) to which the revocation or sus-
pension relates. The effective date of the
revocation or suspension may not be ear-
lier than the date on which the IRS notifies
the registrant.
These proposed rules, which are sim-
ilar to the rules of § 48.4101-1(i), are
necessary because they enable the IRS to
revoke or suspend registrations as needed
to prevent registrants that violate the rules
of section 4101 from using their registra-
tion to avoid payment of tax (by errone-
ously claiming an income tax credit).
VIII. Ownership Clarification for
Section 6417 Elective Payment Election
and Section 6418 Credit Transfer
Election
Both sections 6417(a) and 6418(a)
require a credit (applicable credit or eli-
gible credit) to be determined with respect
to the taxpayer before an election may be
made. The underlying credit provisions
confirm whether a taxpayer, to determine
a credit, must own the relevant underlying
eligible credit property or only conduct
the activities giving rise to a credit. Cur-
rent §§ 1.6417-2(c)(4) and 1.6418-2(d)
(1) provide rules on determining the credit
with respect to a taxpayer and include that
a credit is determined with respect to a
taxpayer if the taxpayer owns the under-
lying eligible credit property and conducts
the activities giving rise to the credit, or
in the case of section 45X (under which
ownership of eligible credit property is not
required), is considered (under the regula-
tions under section 45X) the taxpayer with
respect to which the section 45X credit is
determined.
The preambles to the Elective Payment
Election Regulations and the Credit Trans-
fer Election Regulations both explain with
respect to §§ 1.6417-2(c)(4) and 1.6418-
2(d)(1), respectively, that the only credit
for which ownership is not required is the
section 45X credit. However, a taxpayer
also is not required to own the underlying
eligible credit property to determine the
section 45Z credit. Section 45Z requires
only that a taxpayer produce transporta-
tion fuel at a qualified facility and sell the
fuel in a qualified sale, without requiring
ownership of the qualified facility. See
section 45Z(a)(1), regarding general credit
eligibility, and section 45Z(d)(4), defining
“qualified facility.”
The proposed regulations would amend
both §§ 1.6417-2(c)(4) and 1.6418-2(d)(1)
to indicate that facility ownership is not
required for the section 45Z credit. The
proposed amendments would only require
a taxpayer to conduct the activities giving
rise to the section 45Z credit. It would be
consistent with proposed § 1.45Z-4(e)(1),
which would state that facility ownership
is not required for a section 45Z credit
to be determined. The proposed amend-
ments would also clarify that ownership
is not required for the section 45(d)(3)
(C) credit and include clarifying language
to acknowledge contract manufacturing
arrangements for the section 45X credit.
In addition, the proposed regulations
would amend both §§ 1.6417-2(f) and
1.6418-2(g) to provide different applica-
bility dates for the proposed changes. The
Treasury Department and the IRS request
comments on the ownership language
with respect to sections 45Z and 45(d)
(3)(C), and whether to add language on
contract manufacturing or toll processing
arrangements for the section 45Z credit.
IX. Proposed Applicability Dates and
Reliance
Proposed §§ 1.45Z-1, 1.45Z-2 (except
for paragraph (e)), and 1.45Z-4 through
1.45Z-6, would apply to qualified sales
occurring in taxable years ending on or
after the date the final regulations are pub-
lished in the Federal Register. Proposed
§ 1.45Z-2(e) would apply to qualified
sales occurring in taxable years ending

February 23, 2026 604 Bulletin No. 2026–9
on or after January 10, 2025. Proposed
§ 1.4101-1 and proposed § 48.4101-1(a)
(7) and (8) would apply to persons pro-
ducing transportation fuel in taxable years
ending on or after the date the final regu-
lations are published in the Federal Reg-
ister. Proposed § 1.6417-2(c)(4) and (f),
proposed § 1.6418-2(d)(1) and (g), and
the proposed amendment to § 1.1361-4(a)
(1) would apply to taxable years ending on
or after the date the final regulations are
published in the Federal Register. Tax-
payers may rely on these proposed regula-
tions until final regulations are published
in the Federal Register, provided taxpay-
ers follow them in their entirety and in a
consistent manner.
Special Analyses
I. Regulatory Planning and Review
Executive Orders 12866 and 13563
direct agencies to assess costs and ben-
efits of available regulatory alternatives
and, if regulation is necessary, to select
regulatory approaches that maximize net
benefits (including potential economic,
environmental, public health and safety
effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs and
benefits, of reducing costs, of harmoniz-
ing rules, and of promoting flexibility.
These proposed regulations have been
designated by the Office of Management
and Budget’s (OMB) Office of Information
and Regulatory Affairs (OIRA) as subject
to review under Executive Order 12866
pursuant to the Memorandum of Agree-
ment (July 4, 2025) between the Treasury
Department and OMB regarding review of
tax regulations. OIRA has determined that
this proposed rulemaking is economically
significant and subject to review under
section 3(f) of Executive Order 12866 and
section 1(c) of the Memorandum of Agree-
ment. Accordingly, these proposed regula-
tions have been reviewed by OMB.
A. Need for Regulations
Section 45Z of the Internal Revenue
Code provides an income tax credit for
the production of clean transportation fuel,
which is divided into two broad catego-
ries: sustainable aviation fuel (SAF) and
non-SAF transportation fuel. The statute
directs the Secretary of the Treasury or the
Secretary’s delegate (Secretary) to issue
guidance regarding implementation of sec-
tion 45Z, including the calculation of emis-
sions rates and the annual publication of an
emissions rate table. A taxpayer determines
a transportation fuel’s emissions rate by
either using the annual emissions rate table
or obtaining a provisional emissions rate
(PER) determination from the Secretary.
The proposed regulations provide proce-
dures for taxpayers to obtain a PER if the
emissions rate table does not establish an
emissions rate for the type and category of
transportation fuel produced. The statute
also authorizes the Secretary to issue guid-
ance on taxpayer registration and certifica-
tion for purposes of the section 45Z credit.
The proposed regulations also clarify the
meaning of several statutory terms, such as
“gallon equivalent,” “suitable for use,” and
“sold for use in a trade or business.”
Pursuant to section 6(a)(3)(B) of Execu-
tive Order 12866, the following qualitative
analysis provides further details regarding
the anticipated impacts of the proposed regu-
lations. The statute, prior guidance, and pro-
posed regulations are briefly summarized in
Part I.B. of this Special Analyses. The eco-
nomic analysis of these proposed regulations
is described in Part I.C. of this Special Anal-
yses. Specifically, Part I.C.1. explains the
baseline used for the economic analysis; Part
I.C.2. discusses the types of entities affected
by the proposed regulations; and Part I.C.3.
provides the qualitative assessment of the
potential economic effects, including the
benefits and costs, of the proposed regula-
tions compared to the baseline.
B. Statute, Prior Guidance, and Proposed
Regulations
Section 45Z provides an income tax
credit for clean transportation fuel pro-
duced domestically after December 31,
2024, and sold by December 31, 2029.
Originally enacted in 2022 and extended
and modified by Public Law 119-21,
139 Stat. 72 (July 4, 2025), commonly
known as the One, Big, Beautiful Bill Act
(OBBBA), the section 45Z credit replaces
an assortment of prior fuel incentives.
Those incentives consisted of income
tax credit, excise tax credit, and excise
tax payment provisions for various bio-
fuels and other alternative fuels sold for
use as a fuel or used as a fuel, including
biodiesel, renewable diesel, compressed
natural gas, second generation biofuel,
and SAF. Transportation fuel is divided
into two broad categories: SAF and non-
SAF. Transportation fuel produced after
December 31, 2025, must be exclusively
derived from a feedstock that was pro-
duced or grown in the United States, Mex-
ico, or Canada.
Following the statute, a taxpayer calcu-
lates the amount of the section 45Z credit
by multiplying the applicable amount per
gallon or gallon equivalent with respect
to a transportation fuel by the emissions
factor for that fuel. If a taxpayer produces
the transportation fuel at a qualified facil-
ity that satisfies the prevailing wage and
apprenticeship (PWA) requirements, the
applicable amount is increased. A trans-
portation fuel’s emissions factor measures
the reduction in a fuel’s emissions rate
relative to the statutory baseline emission
rate, expressed as a fraction of the statu-
tory baseline emission rate. The amount of
the section 45Z credit is generally larger
as the emissions rate of the transportation
fuel approaches zero. Transportation fuel
produced after December 31, 2025, cannot
have an emissions rate of less than zero
unless it is derived from animal manure
The primary method for determining the
emissions rate for non-SAF is the United
States Department of Energy’s (DOE)
45ZCF-GREET model. Producers of SAF
have the option of using the 45ZCF-GREET
model, the CORSIA Default methodology,
or the CORSIA Actual methodology. Tax-
payers can request a PER determination
if the annually published emissions rate
table does not establish an emissions rate
for the type and category of transporta-
tion fuel produced. In January 2025, the
United States Department of Agriculture
(USDA) published a beta version of USDA
Feedstock Carbon Intensity Calculator
(FD-CIC) for testing, peer review, and pub-
lic comment in preparation of a final ver-
sion of USDA FD-CIC. Following publica-
tion of the final version of USDA FD-CIC,
the Treasury Department anticipates that
45ZCF FD-CIC, a section 45Z-specific
version of the FD-CIC module, will be
included as an input to the DOE’s 45ZCF-
GREET model to be used for calculating
carbon intensity adjustments under section

Bulletin No. 2026–9 605 February 23, 2026
45Z for feedstocks that are produced using
certain agricultural practices.
The Treasury Department and the IRS
have issued several notices providing ini-
tial guidance on the section 45Z credit.
Notice 2024-49 provided guidance on
the section 45Z registration requirements,
including the time, form, and manner of reg-
istration. Notice 2025-10 announced forth-
coming proposed regulations addressing the
section 45Z credit. These proposed regula-
tions are the forthcoming proposed regula-
tions announced in Notice 2025-10. Addi-
tionally, Notice 2025-11 provided guidance
regarding methodologies

for determining
emissions rates under section 45Z and pro-
vided the initial emissions rate table.
The proposed regulations provide defi-
nitions and general rules on the section
45Z credit, such as on credit eligibility,
credit amount, credit timing, and emis-
sions rates. The statute directs taxpayers
to use a gallon equivalent for non-liquid
fuels but does not provide a baseline stan-
dard. The proposed rules define “gallon
equivalent” to mean, with respect to any
non-liquid fuel, the amount of such fuel
that has the energy equivalent of a gallon
of gasoline determined at the lower heat-
ing value. The higher heating value and
lower heating value of a fuel refer to the
amount of energy released during combus-
tion, but they differ in how they account
for the water produced. The higher heat-
ing value assumes that all water produced
is condensed back into liquid, while the
lower heating value assumes it remains as
vapor, thus excluding the heat of vaporiza-
tion from the total energy.
To qualify for the credit, the fuel must
be suitable for use as a fuel in a highway
vehicle or aircraft (suitable for use). The
proposed regulations define suitable for
use to mean that the fuel either has practi-
cal and commercial fitness for use as a fuel
in a highway vehicle or aircraft or may be
blended into a fuel mixture that has prac-
tical and commercial fitness for use as a
fuel in a highway vehicle or aircraft. The
rules clarify that actual use as a fuel in a
highway vehicle or aircraft is not required.
In addition to being suitable for use, sec-
tion 45Z(a)(4) requires a taxpayer to sell
transportation fuel to an unrelated person:
(i) for use by such person in the production
of a fuel mixture; (ii) for use by such person
in a trade or business; or (iii) who sells such
fuel at retail to another person and places
such fuel in the fuel tank of such other
person. The proposed regulations would
explicitly clarify that the term “sold for use
in a trade or business” includes fuel sold
to an unrelated person that subsequently
resells the fuel in its trade or business.
The proposed PER process would
require a taxpayer to submit an emissions
value request (EVR) to the DOE to obtain
an emissions value, which the taxpayer
would use to file a petition requesting the
determination of a PER. The proposed
regulations also provide various special
rules, including with respect to required
registration, anti-stacking, production
attribution, facility ownership, foreign
feedstock limitation, and recordkeeping.
Finally, the proposed regulations provide
procedures for certification of emissions
rates for SAF transportation fuel, filing
procedures for claiming the section 45Z
credit, and rules for registration.
C. Economic Analysis
1. Baseline
The Treasury Department and the IRS
have assessed the benefits and the costs
of these proposed regulations relative to
a no-action baseline reflecting anticipated
Federal-income-tax-related behavior in
the absence of these regulations.
2. Affected Taxpayers
These proposed regulations could
affect both domestic corporations and
pass-through entities. The IRS Research,
Applied Analytics, and Statistics Division
estimates that there will be 260 facilities
registering to produce transportation fuel.
The Treasury Department and the IRS
understand that, for many producers, each
facility is owned by a disregarded entity.
Each disregarded entity and qualified sub-
chapter S subsidiary (QSub) that has an
EIN and is a producer of transportation
fuel for purposes of section 45Z would
need to register as a producer of clean fuel
for its owner to be eligible to claim the
section 45Z credit. Therefore, the num-
ber of approved registrants is expected to
exceed the number of facilities and credit
claimants, though there is uncertainty in
the magnitude.
The DOE estimated that there would
be 200 PER applicants per year for section
45Z credits in the June 2024 Supporting
Statement for Lifecycle Greenhouse Gas
Emissions Value Analysis: Clean Fuel
Production Credit. However, due to more
recent analysis utilizing the actual number
of PER requests for the section 45V credit,
the estimate has been reduced to 30 PER
requests in the first year and declining
over time as more pathways are added to
the 45ZCF-GREET model.
3. Summary of Economic Effects
The proposed regulations define terms,
incorporate and clarify rules, and provide
certainty for taxpayers intending to claim
the section 45Z credit. In the absence of
regulations on the section 45Z credit, tax-
payers could take differing positions on
eligibility or file claims for credits that
do not meet the statutory criteria. Clearly
defined terms, rules, and requirements
also provide for more efficient tax admin-
istration, the preservation of tax revenues,
accurate filings, and the harmonization of
rules across multiple tax credits.
The Treasury Department and the IRS
have not undertaken quantitative estimates
of the economic effects of these proposed
regulations. The Treasury Department and
the IRS do not have readily available data
or models to estimate with reasonable pre-
cision the effect on the timing and scale
of investment behavior that could result
from these proposed regulations. In the
absence of such quantitative estimates,
the Treasury Department and the IRS
have undertaken a qualitative analysis of
the economic effects of specific provisions
of these proposed regulations relative to a
no-action baseline.
The proposed regulations incorporate
and implement the statutory requirement
to publish an emissions rate table by
directing the identified allowed method-
ologies for the established type and cate-
gories of fuel to the 45ZCF-GREET and
CORSIA Default and Actual models. The
emission rate table thus allows taxpayer
flexibility by reflecting a given taxpay-
er’s specific operations as inputs to the
appropriate model. The initial emissions
rate table provided in the Appendix of IRS
Notice 2025-11 includes the fuels listed in
the table below.

February 23, 2026 606 Bulletin No. 2026–9

89

The statute directs taxpayers to use
a gallon equivalent for non-liquid fuels
but does not provide a baseline standard.
These proposed regulations defi ne “gallon
equivalent” to mean, with respect to any
non-liquid fuel, the amount of such fuel
that has the energy equivalent of a gallon
of gasoline, which refers to the amount of
such fuel that has a Btu content of 116,090
(lower heating value). The proposed regu-
lations use gasoline as the baseline fuel for
testing gallon equivalency because gaso-
line is the most common transportation
fuel in the United States, and section 45Z
is designed to incentivize domestic pro-
duction of transportation fuels that may
serve as alternatives to existing fossil fuels.
According to the U.S. Energy Information
Administration (EIA), “in 2023, petro-
leum products accounted for about 89% of
total U.S. transportation sector energy use.
Biofuels contributed about 6%, most of
which was blended with petroleum fuels
(gasoline, diesel fuel, and jet fuel).”
9
The
chart below using data from EIA’s Annual
Energy Outlook 2025 shows that in 2024,
motor gasoline made up almost 59% of the
total of petroleum and other fuels used in
transportation. Additionally, in the interest
of harmonizing rules, the use of a gasoline
gallon equivalency is consistent with the
gasoline gallon equivalent requirement in
section 6426(d)(3), which applies to many
of the same types of fuel as section 45Z
in the context of a credit that section 45Z
replaces.
9
See https://www.eia.gov/energyexplained/use-of-energy/transportation.php.
10
See New Renewable Fuel Standard volume targets facilitate renewable natural gas production - U.S. Energy Information Administration (EIA).
11
See Alternative Fuels Data Center: Natural Gas Fuel Basics.
Bulletin No. 2026–9 607 February 23, 2026

91

Other definitions of gallon equivalency were considered, including diesel gallon
equivalency and ethanol gallon equivalency. These definitions would have the effect of
decreasing (diesel) or increasing (ethanol) the amount of the calculated section 45Z credit
without changing the characteristics of the fuels eligible for the credits. For example, the diesel
gallon equivalent of gasoline is 0.88 gallons, therefore using a diesel gallon equivalent would
generally reduce any available credit by 12 percent for non-liquid fuels. Neither of these
equivalency definitions would have provided the equivalency of the most common transportation
fuel currently in use nor provided the same consistency with the gasoline gallon equivalent
requirement in section 6426(d)(3).
Non-liquid fuels comprise a small portion of the transportation fuel market. Renewable
natural gas (RNG) accounted for approximately 84 percent of the nearly 64 billion cubic feet of
all the natural gas used as transportation fuel in the United States.
10
Natural gas, however,

10
See New Renewable Fuel Standard volume targets facilitate renewable natural gas production - U.S.
Energy Information Administration (EIA).
Other defi nitions of gallon equivalency
were considered, including diesel gallon
equivalency and ethanol gallon equiva-
lency. These defi nitions would have the
eff ect of decreasing (diesel) or increasing
(ethanol) the amount of the calculated
section 45Z credit without changing the
characteristics of the fuels eligible for
the credits. For example, the diesel gal-
lon equivalent of gasoline is 0.88 gallons,
therefore using a diesel gallon equivalent
would generally reduce any available
credit by 12 percent for non-liquid fuels.
Neither of these equivalency defi nitions
would have provided the equivalency of
the most common transportation fuel cur-
rently in use nor provided the same con-
sistency with the gasoline gallon equiva-
lent requirement in section 6426(d)(3).
Non-liquid fuels comprise a small
portion of the transportation fuel market.
Renewable natural gas (RNG) accounted
for approximately 84 percent of the nearly
64 billion cubic feet of all the natural gas
used as transportation fuel in the United
States.
10
Natural gas, however, accounted
for less than 1% of total transportation
fuel use.
11
In addition, much of the sup-
ply for RNG is due to clean fuel programs
such as the national Renewable Fuel Stan-
dard (RFS) so a small change in the credit
rate for non-liquid fuels resulting from a
diff erent choice for the gallon equivalent
for non-liquid fuels is unlikely to have a

signifi cant eff ect on overall transportation
fuel supply.
To facilitate implementation of a gallon
equivalency standard for non-liquid fuels,
these proposed regulations must specify
whether the equivalency is based on a
lower heating value or a higher heating
value of the baseline fuel, as the two types
of heating values have diff erent energy
contents. The proposed regulations use a
lower heating value rather than a higher
heating value because it is a better repre-
sentation of the useful energy provided by
transportation fuel. To provide clarity and
to ensure consistency across section 45Z
claims, the proposed regulations provide
the lower heating values of some common

February 23, 2026 608 Bulletin No. 2026–9
non-liquid fuels and an example for deter-
mining the number of gallon equivalents
using the listed values.
Section 45Z requires a transportation
fuel, in part, to be suitable for use as a fuel
in a highway vehicle or aircraft but does
not define the term “suitable for use.” The
proposed regulations define “suitable for
use” to mean: (i) that the fuel has practical
and commercial fitness for use as a fuel in
a highway vehicle or aircraft, or (ii) may
be blended into a fuel mixture that has
practical and commercial fitness for use as
a fuel in a highway vehicle or aircraft. The
proposed regulations further clarify that
actual use as a fuel in a highway vehicle
or aircraft is not required.
The definition of “suitable for use” in
these proposed regulations is consistent
with a plain reading of the statutory lan-
guage. Other options considered include
defining “suitable for use” to require actual
use as a fuel in a highway vehicle or air-
craft. Such an interpretation would reduce
the amount of fuel eligible for the credit
and thus constrain the cost of the section
45Z credit. However, such an interpreta-
tion would not be consistent with a plain
reading of the statutory language.
In addition to the suitable for use
requirement, section 45Z(a)(4) requires a
taxpayer to sell transportation fuel to an
unrelated person: (i) for use by such per-
son in the production of a fuel mixture; (ii)
for use by such person in a trade or busi-
ness; or (iii) who sells such fuel at retail to
another person and places such fuel in the
fuel tank of such other person. The pro-
posed regulations explicitly clarify that
the term “sold for use in a trade or busi-
ness” includes fuel sold to an unrelated
person that subsequently resells the fuel in
its trade or business. The proposed defini-
tion responds to stakeholder concern that
more restrictive definitions could prevent
all fuel sales for resale, such as those to
intermediary dealers or wholesalers, from
qualifying for the section 45Z credit.
Stakeholders explained that, in the
fuel industry, many producers sell to
related or unrelated intermediaries, such
as wholesalers or dealers, rather than
directly to unrelated final purchasers.
This common practice allows efficient
distribution and the availability of bio-
fuels across regions of the United States
because resellers have the infrastruc-
ture, capacity, and expertise to deliver
fuel where it is needed that producers do
not.
12
The proposed regulatory definition
promotes flexibility while maintaining
adherence to the statutory language. The
proposed regulatory definition reduces
the costs to those producers who would
need to alter their current distribution
practices to take advantage of the tax
credit and therefore creates an incentive
for more clean fuel production.
In considering the definition of “sold
for use in a trade or business,” the Trea-
sury Department and the IRS evalu-
ated the potential for double crediting.
To address that concern, the draft reg-
ulatory text in the Appendix to Notice
2025-10 defined the term “sold for use
in a trade or business” to mean sold for
use as a fuel in a trade or business within
the meaning of section 162 of the Code.
The draft term did not include a sale
for blending or for further processing,
including use as a primary feedstock to
produce another fuel.
After the publication of Notice 2025-
10, OBBBA amended section 45Z(d)
(5)(A) to exclude from the definition of
“transportation fuel” any fuel produced
from a fuel for which a section 45Z credit
is allowable. This revision indicates that
a sale for use as a primary feedstock to
produce another fuel may qualify as a sale
for use in a trade or business under sec-
tion 45Z(a)(4)(B). The OBBBA amend-
ment thus eliminated the double-credit-
ing potential of transportation fuel used
for further processing, including use as
a primary feedstock to produce another
fuel. As a result, the proposed definition
of “sold for use in a trade or business”
in these proposed regulations responds
to stakeholder feedback by removing the
phrase “sold for use as a fuel” from the
definition without the risk of double cred-
iting for transportation fuels.
Many stakeholders have expressed
the urgent need for guidance to clarify
the scope and mechanics of the PER pro-
cess. Proposed § 1.45Z-2(f) implements
the statutory language regarding the PER
process and provide this urgent guidance
to taxpayers. The proposed regulations
provide clarity to taxpayer requests for
a PER determination by delineating the
proper forms and how to file them, as well
as describing the content required and
explaining the manner and effect of a PER
determination. In addition, the proposed
regulations direct applicants to follow
the DOE’s published instructions as well
as describe common assumptions and the
information required by the DOE for an
EVR. The proposed regulations also har-
monize rules for eligible fuels that are a
category of hydrogen by outlining the
interaction between the PER processes for
the section 45V credit and the section 45Z
credit.
The certainty provided by these pro-
posed regulations would foster consistent
treatment across credit claimants, allow
taxpayers producing eligible transpor-
tation fuel to make informed investment
decisions, and facilitate commercial mar-
ket transactions with respect to contracts
between suppliers and buyers.
II. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3520) (PRA) generally
requires that a Federal agency obtain the
approval of OMB before collecting infor-
mation from the public, whether such
collection of information is mandatory,
voluntary, or required to obtain or retain
a benefit. An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control number
assigned by the OMB.
The collections of information in these
proposed regulations contain reporting,
third-party disclosure, and recordkeeping
requirements that are necessary to ensure
that the taxpayer qualifies for the clean
fuel production credit. The collections
will be used by the IRS for tax compliance
purposes and by taxpayers to ensure the
fuel qualifies for the credit.
The proposed regulations describe
reporting and recordkeeping that are
part of the registration requirements, as
detailed in proposed § 1.4101-1(a), (d),
12
See https://www.eia.gov/energyexplained/gasoline/where-our-gasoline-comes-from.php.

Bulletin No. 2026–9 609 February 23, 2026
(f), and (g). These collections are used
to determine whether an applicant meets
the requirements to be registered under
section 4101, a requirement to qualify for
the section 45Z credit. The registration
requirements, including the Form 637,
are already approved by the OMB under
control number 1545-1835 with the PRA
procedures under 5 CFR 1320.10. The
proposed regulations are not creating or
changing these already approved collec-
tions.
The collections of information in the
proposed regulations describe reporting
related to claiming the clean fuel pro-
duction credit, as detailed in proposed
§ 1.45Z-6. The burden for these require-
ments is included with Form 7218 and
its instructions. The Form 7218 and its
instructions are already approved by
OMB under the following control num-
bers: 1545-0123 for businesses, 1545-
0074 for individuals, 1545-0047 for non-
profit organizations, and 1545-0092 for
trusts and estates with the PRA procedures
under 5 CFR 1320.10. The proposed reg-
ulations are not creating or changing these
already approved collections.
The collections of information in
the proposed regulations would include
reporting requirements that taxpayers
claiming the section 45Z credit for SAF
transportation fuel provide a certifica-
tion from an unrelated person with their
Federal income tax return or information
return for each taxable year for which they
claim the section 45Z credit as required by
section 45Z(f)(1)(A)(i)(II) and as detailed
in proposed § 1.45Z-5. The proposed reg-
ulations would also include a third-party
reporting and disclosure requirement that
such a certification be prepared and certi-
fied by an unrelated person. The certifica-
tion must contain an attestation regarding
the taxpayer’s production of SAF transpor-
tation fuel, conflicts of interest, the certifi-
er’s qualifications, the taxpayer’s facility,
and documentation necessary to substanti-
ate the certification process. The taxpayer
must submit the certification to the IRS
by including it with the Form 7218. The
burden for these requirements is already
included within the Form 7218 and its
instructions. Form 7218 and its instruc-
tions are already approved by OMB under
the following control numbers: 1545-0123
for businesses, 1545-0074 for individuals,
1545-0047 for tax-exempt organizations,
and 1545-0092 for trusts and estates. The
proposed regulations are not creating or
changing these already approved collec-
tions.
The proposed regulations reference
the DOE’s process for an emissions value
applicant (EV applicant) to request an
emissions value from the DOE that could
then be used to file a petition with the Sec-
retary for a PER determination as detailed
in proposed § 1.45Z-2. The petition made
to IRS will be performed by including the
calculated emissions value letter obtained
from the DOE with Form 7218. The bur-
den for the petition to the IRS is already
included within the Form 7218 and its
instructions. Form 7218 and its instruc-
tions are already approved by OMB under
the following control numbers: 1545-0123
for businesses, 1545-0074 for individuals,
1545-0047 for tax-exempt organizations,
and 1545-0092 for trusts and estates. The
proposed regulations would not create or
change these already approved collec-
tions.
The proposed regulations would
describe the collection of information
associated with the process for taxpay-
ers to request an EV from the DOE and
is reflected in the DOE’s PRA submission
relating to such process. These proposed
regulations would not create or change
any of the collection requirements sub-
mitted by the DOE to OMB for approval.
Approval of the DOE’s PRA submission
is pending OMB approval. The proposed
regulations would not create or change
any of the collection requirements being
approved by OMB under the DOE OMB
Control Number 1910-NEW.
The collections of information in the
proposed regulations describe third-party
disclosure and recordkeeping require-
ments that provide safe harbor methods
for the substantiation of emissions rates
and qualified sales, as detailed in proposed
§ 1.45Z-4. The certificates described in
the proposed regulations may be used
to establish, in part, the taxpayer’s eligi-
bility for the section 45Z credit and the
amount of the credit claimed on the tax-
payer’s return. The burden associated
with these information collections will be
included within the following OMB con-
trol numbers: 1545-0123 for businesses,
1545-0074 for individuals, 1545-0047 for
tax-exempt organizations, and 1545-0092
for trusts and estates with the PRA proce-
dures under 5 CFR 1320.10.
The collections of information in the
proposed regulations include recordkeep-
ing requirements related to claiming the
section 45Z credit. A taxpayer would use
these records to establish its eligibility
for the section 45Z credit and the amount
of the credit claimed. The recordkeeping
requirements would include that taxpay-
ers keep records about emissions rates,
production, and sale. These recordkeep-
ing requirements are considered general
tax records under § 1.6001-1(e). For PRA
purposes, general tax records are already
approved by OMB under the following
control numbers: 1545-0123 for busi-
nesses, 1545-0074 for individuals, 1545-
0047 for non-profit organizations, and
1545-0092 for trusts and estates.
III. Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) (RFA) imposes cer-
tain requirements with respect to Federal
rules that are subject to the notice and
comment requirements of section 553(b)
of the Administrative Procedure Act (5
U.S.C. 551 et seq.) and that are likely to
have a significant economic impact on
a substantial number of small entities.
Unless an agency determines that a pro-
posal is not likely to have a significant
economic impact on a substantial number
of small entities, section 603 of the RFA
requires the agency to present an initial
regulatory flexibility analysis (IRFA) of
the proposed rule. The Treasury Depart-
ment and the IRS have not determined
whether the proposed rule, when final-
ized, will likely have a significant eco-
nomic impact on a substantial number
of small entities. This determination
requires further study. However, because
there is a possibility of significant eco-
nomic impact on a substantial number
of small entities, an IRFA is provided in
these proposed regulations. The Treasury
Department and the IRS invite comments
on both the number of entities affected
and the economic impact on small enti-
ties.
Pursuant to section 7805(f) of the
Code, this notice of proposed rulemaking
has been submitted to the Chief Counsel

February 23, 2026 610 Bulletin No. 2026–9
of the Office of Advocacy of the Small
Business Administration for comment on
its impact on small business.
A. Need for and Objectives of the Rule
The proposed regulations would pro-
vide needed guidance for taxpayers on
eligibility for the section 45Z credit, the
amount and timing of the section 45Z
credit, the use of the 45ZCF-GREET
model and CORSIA methodologies to
determine the lifecycle GHG emissions
rates of transportation fuel, procedures for
petitioning the Secretary for a PER deter-
mination, requirements for the certifica-
tion of emissions rates for SAF transpor-
tation fuel, filing procedures for claiming
a section 45Z credit, and rules for regis-
tration under section 4101 for purposes of
section 45Z.
B. Affected Small Entities
The RFA directs agencies to provide a
description of, and if feasible, an estimate
of, the number of small entities that may
be affected by the proposed regulations,
if adopted. The Small Business Adminis-
tration’s Office of Advocacy estimates in
its 2023 FAQs that 99.9 percent of Amer-
ican businesses meet the definition of a
small business. The applicability of these
proposed regulations does not depend on
the size of the business, as defined by
the Small Business Administration. As
described more fully in the preamble to
this proposed regulation and in this IRFA,
sections 45Z, 4101, 6417, and 6418, and
these proposed regulations may affect
a variety of different businesses across
several different industries. Because the
potential credit claimants can vary widely
and the credit first went into effect in 2025,
it is difficult to estimate at this time the
compliance costs and quantifiable burdens
of these proposed regulations, if any, on
small businesses. Although there is uncer-
tainty as to the exact number of small
businesses within this group, the current
estimated number of taxpayers subject to
these proposed regulations is 260 taxpay-
ers of which 35 percent are small.
The Treasury Department and the IRS
expect to receive more information on the
impact on small businesses through com-
ments on these proposed regulations and
again after taxpayers start using the guid-
ance and procedures provided in these
proposed regulations to claim the section
45Z credit.
C. Impact of the Rules
The proposed regulations would pro-
vide rules for how taxpayers can claim
the section 45Z credit. Taxpayers that
claim the section 45Z credit would have
administrative costs related to reading
and understanding the rules as well as
recordkeeping and reporting requirements
because of the certification and Federal
income tax return or information return
requirements. The costs would vary across
different-sized entities and across the
type(s) of project(s) in which such entities
are engaged.
To claim a section 45Z credit, a tax-
payer producing a transportation fuel
must determine the lifecycle GHG emis-
sions rate(s) for all transportation fuel
sold during a taxable year. In general, a
taxpayer must use the emissions rate table
that is in effect on the first day of the tax-
able year in which the taxpayer produces
a section 45Z clean transportation fuel. If
an updated emissions rate table is pub-
lished during a taxpayer’s taxable year of
production, then a taxpayer may choose to
use the updated emissions rate table. If the
transportation fuel, pathway, or primary
feedstock used by the taxpayer to produce
such transportation fuel is not included
in the applicable emissions rate table, the
taxpayer must petition the Secretary for a
PER. As part of the PER petition process,
a taxpayer must apply to the DOE for an
emissions value that it then uses to submit
a PER petition.
To claim a section 45Z credit for SAF
transportation fuel, in addition to deter-
mining the lifecycle GHG emissions rate
of the fuel, a taxpayer must submit a certi-
fication from a qualified certifier attesting
to the taxpayer’s production of SAF trans-
portation fuel, the amount of SAF trans-
portation fuel sold by the taxpayer, certain
general information about the qualified
facility at which the SAF transporta-
tion fuel being certified was produced,
conflicts of interest, the certifier’s qual-
ifications, and documentation necessary
to substantiate the certification process.
Additionally, a taxpayer would need to
retain records sufficient to establish com-
pliance with these proposed regulations
for as long as may be relevant.
Although the Treasury Department
and the IRS do not have sufficient data
to determine precisely the likely extent
of the increased costs of compliance, the
estimated burden of complying with the
recordkeeping and reporting requirements
are described in Part II. of this Special
Analyses regarding the PRA.
D. Alternatives Considered
The Treasury Department and the IRS
considered alternatives to approaches
taken in the proposed regulations. The
proposed regulations were designed to
minimize burdens for taxpayers while
ensuring that the statutory requirements
of section 45Z are met. Many of the com-
pliance burdens in the proposed regula-
tions are statutory requirements, but in an
effort to reduce these burdens the Treasury
Department and the IRS considered and
included safe harbors for substantiation of
emissions rates and substantiation of qual-
ified sales to allow greater certainty for
taxpayers. Additionally, in providing rules
related to the information required to be
submitted to claim the section 45Z credit,
the Treasury Department and the IRS con-
sidered whether the production and sale of
SAF transportation fuel could be certified
by an unrelated person without requiring
the unrelated person to possess certain
qualifications or conflict of interest char-
acteristics. Such an option would, how-
ever, increase the opportunity for fraud or
excessive payments under section 45Z.
Section 45Z(e) authorizes the IRS
to issue guidance regarding implemen-
tation of the section 45Z credit and the
determination of clean fuel production
credits under section 45Z. As described
in the preamble to these proposed regula-
tions, these proposed rules carry out that
Congressional intent, as the certification
requirements allow the IRS to verify the
taxpayer’s entitlement to the section 45Z
credit.
Comments are requested on the
requirements in the proposed regulations,
including specifically whether there are
less burdensome alternatives that do not
increase the risk of duplication, fraud, or
improper payments under section 45Z.

Bulletin No. 2026–9 611 February 23, 2026
E. Duplicative, Overlapping, or
Conflicting Federal Rules
The proposed regulations would not
duplicate, overlap, or conflict with any
relevant Federal rules. As discussed pre-
viously, the proposed regulations would
merely provide procedures and definitions
to allow taxpayers to claim the section
45Z credit. The Treasury Department and
the IRS invite comments on identifying
and avoiding overlapping, duplicative, or
conflicting requirements.
IV. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates
Reform Act of 1995 requires that agencies
assess anticipated costs and benefits and
take certain other actions before issuing a
final rule that includes any Federal man-
date that may result in expenditures in any
one year by a State, local, or Tribal gov-
ernment, in the aggregate, or by the private
sector, of $100 million (updated annually
for inflation). These proposed regulations
do not include any Federal mandate that
may result in expenditures by State, local,
or Tribal governments, or by the private
sector, in excess of that threshold.
V. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if the
rule either imposes substantial direct com-
pliance costs on State and local govern-
ments and is not required by statute, or pre-
empts State law, unless the agency meets
the consultation and funding requirements
of section 6 of the Executive order. This
proposed rule does not have federalism
implications and does not impose substan-
tial direct compliance costs on State and
local governments or preempt State law
within the meaning of the Executive order.
Comments and Public Hearing
Before these proposed amendments to
the regulations are adopted as final regula-
tions, consideration will be given to com-
ments regarding the notice of proposed
rulemaking that are submitted timely to
the IRS as prescribed in the preamble
under the ADDRESSES section. The
Treasury Department and the IRS request
comments on all aspects of the proposed
regulations. All comments will be made
available at https://www.regulations.gov
or upon request. Once submitted to the
Federal eRulemaking Portal, comments
cannot be edited or withdrawn.
A public hearing with respect to this
notice of proposed rulemaking has been
scheduled for May 28, 2026, beginning
at 10 a.m. ET, in the Auditorium at the
Internal Revenue Building, 1111 Con-
stitution Avenue NW, Washington, DC.
Due to building security procedures, vis-
itors must enter at the Constitution Ave-
nue entrance. In addition, all visitors must
present photo identification to enter the
building. Because of access restrictions,
visitors will not be admitted beyond the
immediate entrance area more than 30
minutes before the hearing starts. Partic-
ipants may alternatively attend the public
hearing by telephone.
The rules of 26 CFR 601.601(a)(3)
apply to the public hearing. Persons who
wish to present oral comments at the pub-
lic hearing must submit an outline of the
topics to be discussed and the time to be
devoted to each topic by April 6, 2026.
A period of 10 minutes will be allotted
to each person for making comments.
An agenda showing the scheduling of the
speakers will be prepared after the dead-
line for receiving outlines has passed.
Copies of the agenda will be available
free of charge at the public hearing. If no
outline of the topics to be discussed at
the public hearing is received by April 6,
2026, the public hearing will be cancelled.
If the public hearing is cancelled, a notice
of cancellation of the public hearing will
be published in the Federal Register.
Individuals who want to testify in
person at the public hearing must send
an email to publichearings@irs.gov to
have their name(s) added to the building
access list. The subject line of the email
must contain the regulation number REG-
121244-23 and the language TESTIFY In
Person. For example, the subject line may
say: Request to TESTIFY In Person at
Hearing for REG-121244-23.
Individuals who want to testify by
telephone at the public hearing must
send an email to publichearings@irs.
gov to receive the telephone number and
access code for the public hearing. The
subject line of the email must contain the
regulation number REG-121244-23 and
the language TESTIFY Telephonically.
For example, the subject line may say:
Request to TESTIFY Telephonically at
Hearing for REG-121244-23.
Individuals who want to attend the pub-
lic hearing in person without testifying
must also send an email to publichear-
ings@irs.gov to have their name(s) added
to the building access list. The subject line
of the email must contain the regulation
number REG-121244-23 and the language
ATTEND In Person. For example, the sub-
ject line may say: Request to ATTEND
Hearing In Person for REG-121244-23.
Requests to attend the public hearing must
be received by 5 p.m. ET on May 26, 2026.
Individuals who want to attend the pub-
lic hearing by telephone without testifying
must also send an email to publichear-
ings@irs.gov to receive the telephone
number and access code for the hearing.
The subject line of the email must con-
tain the regulation number REG-121244-
23 and the language ATTEND Hearing
Telephonically. For example, the subject
line may say: Request to ATTEND Hear-
ing Telephonically for REG-121244-23.
Requests to attend the public hearing must
be received by 5 p.m. ET on May 26, 2026.
Public hearings will be made accessi-
ble to people with disabilities. To request
special assistance during a public hearing,
please contact the Publications and Regu-
lations Section of the Office of Associate
Chief Counsel (Procedure and Admin-
istration) by sending an email to publi-
chearings@irs.gov (preferred) or by tele-
phone at (202) 317-6901 (not a toll-free
number) by May 22, 2026.
Statement of Availability of IRS
Documents
Guidance cited in this preamble is pub-
lished in the Internal Revenue Bulletin
and is available from the Superintendent
of Documents, U.S. Government Publish-
ing Office, Washington, DC 20402, or by
visiting the IRS website at https://www.
irs.gov.
Drafting Information
The principal authors of these proposed
regulations are Jennifer Golden, Danielle

February 23, 2026 612 Bulletin No. 2026–9
Mayfield, Andrew Clark, and Alexander
Scott of the Office of Associate Chief
Counsel (Energy, Credits, and Excise
Tax). However, other personnel from the
Treasury Department, the DOE, the EPA,
the USDA, the Federal Aviation Adminis-
tration (FAA), and the IRS participated in
their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
26 CFR Part 48
Reporting and recordkeeping require-
ments.
Proposed Amendments to the
Regulations
Accordingly, the Treasury Department
and the IRS propose to amend 26 CFR
parts 1 and 48 as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by adding entries
for §§ 1.45Z-1, 1.45Z-2, 1.45Z-4 through
1.45Z-6, 1.1361-4, and 1.4101-1 in
numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
* * * * *
Section 1.45Z-1 also issued under 26
U.S.C. 45Z(b), (d), (e), and (f).
Section 1.45Z-2 also issued under 26
U.S.C. 45Z(b) and (e).
* * * * *
Section 1.45Z-4 also issued under 26
U.S.C. 45Z(e) and (f).
Section 1.45Z-5 also issued under 26
U.S.C. 45Z(e) and (f).
Section 1.45Z-6 also issued under 26
U.S.C. 45Z(e).
* * * * *
Section 1.1361-4 also issued under 26
U.S.C. 1361(b)(3)(A).
* * * * *
Section 1.4101-1 also issued under 26
U.S.C. 45Z(e), 4101(a)(1) and (c), and
4222(c).
* * * * *
Par. 2. Sections 1.45Z-1 through
1.45Z-2 are added to read as follows:
§ 1.45Z-1 Clean fuel production credit;
definitions.
(a) Overview. For purposes of section
38 of the Code, the section 45Z clean fuel
production credit is determined under
section 45Z of the Code and the section
45Z regulations. This section provides
an overview and definitions that apply
for purposes of section 45Z and the sec-
tion 45Z regulations. Section 1.45Z-2
provides general rules for determining
the amount and timing of the section
45Z credit, including rules on the emis-
sions factor and the emissions rate for
transportation fuels. Section 1.45Z-3
provides rules relating to the increased
credit amount for satisfying prevailing
wage and apprenticeship (PWA) require-
ments. Section 1.45Z-4 provides rules on
required registration (under section 4101
of the Code and § 1.4101-1), anti-stack-
ing, anti-abuse, production attribution,
facility ownership, foreign feedstock and
prohibited foreign entity restrictions, and
recordkeeping and substantiation. Sec-
tion 1.45Z-5 provides procedures for the
certification of emissions rates. Section
1.45Z-6 provides procedures for filing a
claim for the section 45Z credit. Section
1.4101-1 provides the rules for registra-
tion under section 4101.
(b) Definitions. The definitions in this
section apply for purposes of section 45Z
and the section 45Z regulations.
(1) 45ZCF-GREET model. The term
45ZCF-GREET model means the model
by that name developed by the Argonne
National Laboratory (ANL) and published
by the U.S. Department of Energy (DOE)
for use in determining the amount of life-
cycle greenhouse gas (GHG) emissions
for purposes of section 45Z. Additional
information about the 45ZCF-GREET
model is available at https://www.energy.
gov/eere/greet.
(2) Applicable amount. The term
applicable amount means the applicable
amount as described in section 45Z(a) and
§ 1.45Z-2(a)(4).
(3) Applicable material. The term
applicable material means, pursuant to
section 45Z(d)(5)(B)(i)—
(i) Monoglycerides, diglycerides, and
triglycerides;
(ii) Free fatty acids; and
(iii) Fatty acid esters.
(4) ASTM. The term ASTM means the
standards published by ASTM Interna-
tional, formerly known as the American
Society for Testing and Materials. Addi-
tional information about ASTM Interna-
tional is available at https://www.astm.
org/.
(5) Biomass. The term biomass means,
pursuant to sections 45Z(d)(5)(B)(ii) and
45K(c)(3), any organic material other
than—
(i) Oil and natural gas (or any product
thereof); and
(ii) Coal (including lignite) or any
product thereof.
(6) Calculated emissions value letter
(CEVL). The term calculated emissions
value letter or CEVL means the letter
issued by the DOE to an emissions value
(EV) applicant. A CEVL includes the EV
that the DOE determined with respect to
the fuel that is the subject of the EV appli-
cant’s emissions value request (EVR) and
the control number that the DOE assigned
to the EV applicant’s EVR.
(7) Claim; Form 7218—(i) Claim. The
term claim means a completed Form 7218,
Clean Fuel Production Credit, includ-
ing all information and documentation
that the form instructions and the section
45Z regulations require, that a taxpayer
files with its Federal income tax return or
Federal information return for the taxable
year for which the section 45Z credit is
determined. The term includes the making
of an election under section 6417 or sec-
tion 6418 and the regulations thereunder,
as applicable, by an applicable entity or
eligible taxpayer.
(ii) Form 7218. The term Form 7218
means Form 7218, Clean Fuel Production
Credit, and any successor form(s). See
§ 601.602 of this chapter.
(8) CO
2
e. The term CO
2
e means, with
respect to any GHG, the equivalent carbon
dioxide (as determined based on relative

Bulletin No. 2026–9 613 February 23, 2026
global warming potential). See section
45Z(d)(2).
(9) Code. The term Code means the
Internal Revenue Code.
(10) CORSIA methodologies—(i) In
general. The term CORSIA methodologies
means the fuel lifecycle methodologies
used under Volume IV of Annex 16 to the
Chicago Convention, Carbon Offsetting
and Reduction Scheme for International
Aviation (CORSIA), which has been
adopted by the International Civil Avia-
tion Organization (ICAO) with the agree-
ment of the United States. See section
45Z(b)(1)(B)(iii)(I). Additional informa-
tion about CORSIA is available at https://
www.icao.int/environmental-protection/
CORSIA/Pages/default.aspx as of Febru-
ary 4, 2026.
(ii) CORSIA Default; CORSIA Actual.
The term CORSIA Default means deter-
minations from fuel pathways approved
under the CORSIA Default Life Cycle
Emissions Values for CORSIA Eligi-
ble Fuels lifecycle approach (COR-
SIA Default) with the agreement of the
United States. The term CORSIA Actual
means determinations from fuel pathways
approved under the CORSIA Method-
ology for Calculating Actual Life Cycle
Emissions Values lifecycle approach
(CORSIA Actual) with the agreement of
the United States. Additional informa-
tion about CORSIA Default and CORSIA
Actual is available at https://www.icao.
int/environmental-protection/CORSIA/
Pages/CORSIA-Eligible-Fuels.aspx.
(iii) Agreement of the United States
required. The terms CORSIA method-
ologies, CORSIA Default, and CORSIA
Actual do not include any portion of or
any approach within such methodologies
to which the United States has not agreed.
See section 45Z(b)(1)(B)(iii)(I).
(11) DOE. The term DOE means the
United States Department of Energy.
(12) Eligible fuel—(i) In general. The
term eligible fuel, for purposes of the
provisional emissions rate procedures
described in section 45Z(b)(1)(D) and
§ 1.45Z-2(f) and the associated definitions
in this paragraph (b), means a fuel that, for
the taxable year during which such fuel is
produced, is either—
(A) A type of fuel not included in
the applicable emissions rate table (as
described in § 1.45Z-2(e)(2)); or
(B) If the type of fuel is included in the
applicable emissions rate table, such fuel’s
category is not included in the applicable
emissions rate table.
(ii) Other requirements. An eligible
fuel must also meet the requirements of
section 45Z(d)(5)(A)(i), (iii), and (iv).
(13) Emissions factor. The term emis-
sions factor means the emissions factor
as described in section 45Z(b)(1)(A) and
§ 1.45Z-2(c)(1).
(14) Emissions rate. The term emis-
sions rate means the emissions rate for a
transportation fuel as described in section
45Z(b)(1)(B) and (D) and § 1.45Z-2(d).
(15) Emissions value (EV). The term
emissions value or EV means the value
obtained from the DOE setting forth the
DOE’s analytical assessment of the life-
cycle GHG emissions associated with the
production of an eligible fuel using a par-
ticular primary feedstock and pathway.
(16) E PA. The term E PA means the
United States Environmental Protection
Agency.
(17) EV applicant. The term EV appli-
cant means a taxpayer submitting a request
to the DOE for an emissions value for an
eligible fuel for purposes of obtaining a
provisional emissions rate (PER) deter-
mination as provided in section 45Z(b)(1)
(D) and § 1.45Z-2(f).
(18) Facility—(i) In general. For pur-
poses of the definition of qualified facil-
ity in section 45Z(d)(4) and paragraph
(b)(28) of this section, the term facility
means a single production line that pro-
duces a transportation fuel. For this pur-
pose, a single production line includes
all components that function interde-
pendently to produce a transportation fuel
through a process that results in the life-
cycle GHG emissions rate used to deter-
mine the credit. Components function
interdependently to produce a transpor-
tation fuel if the use of each component
is dependent upon the use of each of the
other components to produce a transpor-
tation fuel. A component that functions
interdependently with other components
to produce a transportation fuel need not
be located in the same building as, or
within a certain geographic proximity to,
the other components. A facility includes
carbon capture equipment if such carbon
capture equipment contributes to the life-
cycle GHG emissions rate of the transpor-
tation fuel for which the credit is deter-
mined. A single production line includes
all steps of the production process from
the processing of feedstock through to the
transportation fuel that the taxpayer sells
in a qualified sale.
(ii) Certain indirect production and
post-production equipment. The term
facility does not include—
(A) Equipment that is used to con-
dition, such as equipment used to blend
transportation fuel into a fuel mixture,
pressurize a fuel for use in transportation,
or transport a transportation fuel beyond
the point of production; or
(B) Notwithstanding paragraph (b)
(18)(iii) of this section, feedstock-re-
lated equipment (including production,
purification, recovery, transportation, or
transmission equipment) or electricity
production equipment used to power the
transportation fuel production process,
including any carbon capture equipment
associated with the electricity production
process.
(iii) Multipurpose components. Com-
ponents that have a purpose in addition
to the production of a transportation fuel
may be part of a facility if such compo-
nents function interdependently with other
components to produce a transportation
fuel.
(iv) Examples. The following examples
illustrate the definition of the term facility.
(A) Example 1. Effect of geographic proximity;
carbon capture equipment. Z produces a transporta-
tion fuel at a facility that is equipped with carbon
capture equipment (as defined in § 1.45Q-2(c)), as
distinguished from the carbon capture equipment
described in paragraph (b)(18)(ii)(B) of this section.
One purpose of the equipment is to capture carbon
oxides. Without the carbon capture equipment, the
facility could not produce a fuel that has an emis-
sions rate that would qualify for the section 45Z
credit. Because the carbon capture equipment func-
tions interdependently with other components to
produce the transportation fuel, the carbon capture
equipment is part of the facility under paragraph (b)
(18)(i) of this section. The analysis in this example
is the same regardless of the geographic distance
between the carbon capture equipment and the rest
of the components comprising the facility.
(B) Example 2. Single production line with
components functioning interdependently; sus-
tainable aviation fuel (SAF) transportation fuel. X
produces SAF transportation fuel that is a synthetic
blending component that meets the requirements of
ASTM D7566, Annex A2. X sells the SAF trans-
portation fuel to Y, an unrelated person. Y blends
the SAF transportation fuel with kerosene to cre-
ate a fuel mixture that qualifies as jet fuel under
ASTM D7566. X uses equipment and components

February 23, 2026 614 Bulletin No. 2026–9
that function interdependently to produce the SAF
transportation fuel that is sold to Y. X’s equipment
and components constitute a facility for section 45Z
purposes. As described in paragraph (b)(18)(ii)(A)
of this section, Y’s equipment and components used
to make a transportation fuel mixture are blending
equipment and are not a facility for section 45Z
purposes.
(19) Fuel. The term fuel means any liq-
uid or gaseous substance that can be con-
sumed to supply heat or power. Therefore,
for purposes of section 45Z, the term fuel
does not include electricity.
(20) Gallon equivalent—(i) In general.
For purposes of section 45Z(a)(1)(A),
the term gallon equivalent means, with
respect to any non-liquid fuel, the amount
of such fuel that has the energy equivalent
of a gallon of gasoline, which refers to the
amount of such fuel that has a British ther-
mal unit (Btu) content of 116,090 (lower
heating value).
(ii) Non-liquid fuel. A fuel is consid-
ered non-liquid if it is in a gaseous state
at ambient pressure and temperature of
1 atmosphere and 60 degrees Fahrenheit,
respectively.
(iii) Calculation—(A) In general. For
any non-liquid fuel, the gallon equivalent
of such fuel is equal to that fuel’s lower
heating value divided by the lower heating
value of a gallon of gasoline. Expressed
mathematically: Gallon equivalent =
lower heating value of the fuel (measured
in Btu) ÷ lower heating value of a gallon
of gasoline (116,090 Btu).
(B) Rounding. The gallon equivalent
determined under paragraph (b)(20)(iii)
(A) of this section must be rounded to 5
decimal places.
(iv) Certain lower heating values. This
paragraph (b)(20)(iv) provides the lower
heating values of some non-liquid fuels.
(A) The lower heating value of low-
GHG compressed conventional or alter-
native natural gas (CANG) is 20,267 Btu
per pound.
(B) The lower heating value of low-
GHG dimethyl ether is 12,417 Btu per
pound.
(C) The lower heating value of low-
GHG hydrogen is 51,585 Btu per pound.
(D) The lower heating value of low-
GHG liquefied CANG is 20,908 Btu per
pound. For this purpose, low-GHG lique-
fied CANG is a non-liquid fuel at ambient
pressure and temperature of 1 atmosphere
and 60 degrees Fahrenheit.
(E) The lower heating value of low-
GHG liquefied petroleum gas (LPG)
(other than propane from hydropro-
cessed esters and fatty acids (HEFA)) is
19,873 Btu per pound. For this purpose,
low-GHG LPG (other than propane from
HEFA) is a non-liquid fuel at ambient
pressure and temperature of 1 atmosphere
and 60 degrees Fahrenheit.
(F) The lower heating value of low-
GHG LPG (propane from HEFA) is
18,568 Btu per pound. For this purpose,
low-GHG LPG (propane from HEFA)
is a non-liquid fuel at ambient pressure
and temperature of 1 atmosphere and 60
degrees Fahrenheit.
(v) Example. X produced 100,000
pounds of low-GHG compressed CANG.
To determine the number of gallon equiva-
lents of low-GHG compressed CANG that
X produced, X must divide the lower heat-
ing value of low-GHG compressed CANG
(20,267 Btu per pound), by the lower heat-
ing value of a gallon of gasoline (116,090
Btu). Rounded to 5 decimal places, on an
energy equivalent basis, each pound of
low-GHG compressed CANG is equal to
0.17458 gallon equivalents (20,267 Btu
per lb. ÷ 116,090 Btu). Thus, X produced
17,458 gallon equivalents (0.17458 gallon
equivalents × 100,000 lbs.) of low-GHG
compressed CANG.
(21) Greenhouse gas (GHG). The term
greenhouse gas, or GHG, has the same
meaning given that term under section
211(o)(1)(G) of the Clean Air Act (CAA)
(42 U.S.C. 7545(o)(1)(G)), as in effect on
August 16, 2022. See section 45Z(d)(3).
(22) Lifecycle GHG emissions. The
term lifecycle GHG emissions means the
lifecycle GHG emissions as described
in section 211(o)(1)(H) of the CAA (42
U.S.C. 7545(o)(1)(H)), as in effect on
August 16, 2022. See section 45Z(b)(1)
(B)(i).
(23) mmBTU. The term mmBTU means
1,000,000 British thermal units. See sec-
tion 45Z(d)(1).
(24) Non-SAF transportation fuel—(i)
In general. The term non-SAF transpor-
tation fuel means any transportation fuel
that is not a SAF transportation fuel.
(ii) Low-GHG non-SAF fuels. This
paragraph (b)(24)(ii) provides a non-ex-
clusive list of fuels that are not sustain-
able aviation fuel (non-SAF fuels) that
may qualify as a transportation fuel, as
well as descriptions of such fuels. A listed
non-SAF fuel that meets the applicable
description in this paragraph (b)(24)(ii)
must also meet all the other applicable
requirements under section 45Z and the
section 45Z regulations to qualify as a
transportation fuel.
(A) Low-GHG biodiesel. The term
low-GHG biodiesel means the monoal-
kyl esters of long chain fatty acids that
meet the specifications of ASTM D6751
and that have an emissions rate that is not
greater than 50 kilograms of CO
2
e per
mmBTU.
(B) Low-GHG butanol. The term low-
GHG butanol means any mixture of n-bu-
tyl, sec-butyl, and iso-butyl alcohols that
meets the specifications of ASTM D7862
and that has an emissions rate that is not
greater than 50 kilograms of CO
2
e per
mmBTU.
(C) Low-GHG diesel fuel. The term
low-GHG diesel fuel means liquid fuel,
including renewable diesel, that meets the
specifications of ASTM D975 and that has
an emissions rate that is not greater than
50 kilograms of CO
2
e per mmBTU.
(D) Low-GHG dimethyl ether. The term
low-GHG dimethyl ether, which includes
renewable dimethyl ether, means a gas-
eous fuel that meets the specifications of
ASTM D7901 and that has an emissions
rate that is not greater than 50 kilograms
of CO
2
e per mmBTU.
(E) Low-GHG ethanol. The term low-
GHG ethanol means ethyl alcohol that is a
liquid fuel that meets the specifications of
ASTM D4806 for denatured fuel ethanol
or ASTM D8651 for undenatured fuel eth-
anol for blending with gasoline and that
has an emissions rate that is not greater
than 50 kilograms of CO
2
e per mmBTU.
(F) Low-GHG gasoline. The term low-
GHG gasoline, which includes renewable
gasoline, means liquid fuel that meets the
specifications of ASTM D4814 and that
has an emissions rate that is not greater
than 50 kilograms of CO
2
e per mmBTU.
(G) Low-GHG hydrogen. The term
low-GHG hydrogen means any gaseous
or liquid fuel that meets the requirements
of the Society of Automotive Engineers
(SAE) J2719 standard and that has an
emissions rate that is not greater than 50
kilograms of CO
2
e per mmBTU. Informa-
tion about SAE standards is available at
https://www.sae.org/standards.

Bulletin No. 2026–9 615 February 23, 2026
(H) Low-GHG liquefied petroleum gas
(LPG). The term low-GHG LPG, which
includes low-GHG propane, means lique-
fied gases that meet the specifications of
ASTM D1835 and that have an emissions
rate that is not greater than 50 kilograms
of CO
2
e per mmBTU.
(I) Low-GHG methanol. The term low-
GHG methanol means a methyl alcohol
that is a liquid fuel that meets the specifi-
cations of ASTM D1152 or ASTM D5797
and that has an emissions rate that is not
greater than 50 kilograms of CO
2
e per
mmBTU.
(J) Low-GHG conventional or alter-
native natural gas (CANG). The term
low-GHG CANG, which includes renew-
able natural gas (RNG), means a pipe-
line-quality compressed or liquefied gas
that is interchangeable with fossil natural
gas, requires only minimal processing (for
example, further compression or liquefac-
tion), to meet the specifications of ASTM
D8080, and that has an emissions rate that
is not greater than 50 kilograms of CO
2
e
per mmBTU.
(25) Prevailing wage and apprentice-
ship requirements (PWA requirements).
The term prevailing wage and apprentice-
ship requirements or PWA requirements
means the requirements described in sec-
tion 45Z(f)(6) and (7) and § 1.45Z-3.
(26) Producer—(i) In general. Except
as provided in paragraph (b)(26)(ii) of
this section, the term producer means the
person that engages in the production of a
transportation fuel.
(ii) Alternative natural gas. With
respect to alternative natural gas, includ-
ing RNG, the term producer means the
person that processes the untreated sources
of alternative natural gas to remove water,
carbon dioxide, and other impurities such
that it is interchangeable with fossil natu-
ral gas.
(iii) Examples. The following exam-
ples illustrate the definition of the term
producer.
(A) Example 1. SAF producer. X uses vegeta-
ble oil to make 10,000 gallons of a synthetic blend-
ing component via a HEFA production pathway
described in ASTM D7566, Annex A2, that qualifies
as a SAF transportation fuel. X sells the synthetic
blending component to Y, a blender that makes a
20,000-gallon SAF blend, consisting of 50 percent
synthetic blending component and 50 percent petro-
leum-based kerosene, that meets the requirements
of ASTM D7566. X and Y are unrelated. X is the
producer of the 10,000 gallons of synthetic blending
component that it sold to Y. Y is not the producer
of any of the 20,000 gallons of fuel that it blended
because blending is not production.
(B) Example 2. RNG producer. X collects biogas
from an anaerobic digester and processes it into RNG
that qualifies as a transportation fuel. X sells 10,000
gallon equivalents of RNG to Y, a RNG wholesaler
and distributer. X injects the 10,000 gallon equiva-
lents of RNG into a pipeline. Y removes 10,000 gal-
lon equivalents of CANG from the pipeline, further
compresses it, and sells it to a municipality that uses
it to fuel compressed natural gas buses. X and Y are
unrelated. X is the producer of the 10,000 gallon
equivalents of RNG. Y is not the producer because
Y merely took a post-production transportation fuel
and further compressed it.
(27) Production—(i) In general. The
term production (except for purposes of
section 45Z(a)(4)(A) and paragraph (b)
(29)(i)(A) of this section) means all steps
and processes used to make a transporta-
tion fuel. Production begins with the pro-
cessing of primary feedstock(s) and ends
with a transportation fuel ready to be sold
in a qualified sale. Production must involve
substantial processing by the producer to
create a transportation fuel. Production
does not include instances in which a per-
son engages in minimal processing, such
as creating a fuel mixture or, except as pro-
vided for CANG in this paragraph (b)(27)
(i), otherwise engaging in activities that
do not result in a chemical transformation.
In the case of CANG, production includes
the act of processing the untreated sources
of alternative natural gas to remove water,
carbon dioxide, and other impurities
such that it is interchangeable with fossil
natural gas. Production of CANG does
not include compressing CANG that is
already interchangeable with fossil natural
gas to a higher pressure. Production does
not include instances in which a person
uses a primary feedstock to produce a fuel
that meets the same ASTM standard as the
primary feedstock. Production must occur
in the United States, which includes any
territory of the United States.
(ii) Examples. The following examples
illustrate the definition of the term produc-
tion.
(A) Example 1. Minimal processing for stabiliz-
ing biodiesel; production in the United States. X, a
domestic corporation, imports fatty acid methyl ester
(FAME) from Canada that does not meet the ASTM
D6751 specifications for biodiesel. After importation
into the United States, X adds a stabilizing additive
so that the FAME meets the specifications of ASTM
D6751. The resulting fuel is ASTM-compliant bio-
diesel that qualifies as a transportation fuel. X has
not produced the ASTM-compliant biodiesel, as X
merely engaged in minimal processing by adding
an additive to the imported FAME. Further, X did
not produce the ASTM-compliant biodiesel in the
United States, as X did not engage in substantial pro-
cessing in the United States. Substantial processing,
and thus production, occurred before X imported the
FAME into the United States.
(B) Example 2. Minimal processing for dehy-
drating hydrous ethanol; production in the United
States. Y, a domestic corporation, imports hydrous
ethanol from Mexico into the United States. The
hydrous ethanol has excessive water content and
does not meet the ASTM D4806 specifications for
ethanol. After importation into the United States, Y
reduces the water content of the hydrous ethanol.
The resulting fuel is ASTM-compliant anhydrous
ethanol that qualifies as a transportation fuel. Y has
not produced the ASTM-compliant anhydrous etha-
nol, as Y merely engaged in minimal processing by
dehydrating the imported hydrous ethanol. Further,
Y did not produce the ASTM-compliant anhydrous
ethanol in the United States, as Y did not engage
in substantial processing in the United States. Sub-
stantial processing, and thus production, occurred
before Y imported the hydrous ethanol into the
United States.
(C) Example 3. Minimal processing for blend-
ing ethanol and gasoline. Z, a domestic corpora-
tion, buys ethanol that qualifies as a transportation
fuel and blends the ethanol with gasoline. Z has not
produced a transportation fuel, as Z merely engaged
in minimal processing by blending the ethanol with
gasoline to create a fuel mixture.
(D) Example 4. Production and subsequent
blending by same person. Z, a domestic corporation,
produces ethanol that qualifies as a transportation
fuel and then blends the ethanol with gasoline. Z
has engaged in production of a transportation fuel
with respect to the ethanol, notwithstanding Z’s
subsequent blending of the ethanol with gasoline.
However, Z’s blending, alone, does not constitute
production, as Z engaged in minimal processing by
blending the ethanol with gasoline to create a fuel
mixture.
(28) Qualified facility—(i) In general.
The term qualified facility means a facil-
ity (as defined in paragraph (b)(18) of this
section) used to produce transportation
fuel and excludes any facility for which
an anti-stacking credit is allowed under
section 38 for the taxable year. See section
45Z(d)(4). For more information on the
application of the anti-stacking rules, see
§ 1.45Z-4(b).
(ii) Anti-stacking credit. The term
anti-stacking credit means any one of the
following credits listed in section 45Z(d)
(4)(B):
(A) The credit for production of clean
hydrogen under section 45V (section 45V
credit).
(B) The credit determined under section
46 to the extent that such credit is attribut-
able to the energy credit determined under

February 23, 2026 616 Bulletin No. 2026–9
section 48 with respect to any specified
clean hydrogen production facility for
which an election is made under section
48(a)(15) (section 48(a)(15) election).
(C) The credit for carbon oxide seques-
tration under section 45Q (section 45Q
credit).
(29) Qualified sale—(i) In general.
The term qualified sale means a sale of
transportation fuel in a manner described
in section 45Z(a)(4). The term refers to a
sale of transportation fuel by the taxpayer
to an unrelated person if—
(A) The fuel is sold for use in the pro-
duction of a fuel mixture by such person;
(B) The fuel is sold for use in a trade or
business by such person; or
(C) Such person sells such fuel at retail
to another person and places such fuel in
the fuel tank of such other person.
(ii) Sold for use in a trade or busi-
ness. The term sold for use in a trade or
business means sold for use in a trade or
business, with trade or business having
the same meaning as in section 162 of the
Code. The term sold for use in a trade or
business includes fuel sold to an unrelated
person that subsequently resells the fuel
in its trade or business. The term does not
include a sale for blending or a sale to a
purchaser that sells the fuel at retail to
another person and places the fuel in the
fuel tank of such other person.
(iii) Sale by another member of a con-
solidated group. In the case of a corpo-
ration that is a member of an affiliated
group of corporations filing a consolidated
return (that is, a member of a consolidated
group (as defined in § 1.1502-1(b) and
(h), respectively)), that corporation will
be treated as selling fuel to an unrelated
person if that fuel is sold to the unrelated
person by another member of that consoli-
dated group. See section 45Z(f)(3).
(iv) Sale by related person (other than
another member of a consolidated group).
Except in the case of a taxpayer described
in paragraph (b)(29)(iii) of this section,
and in accordance with section 45Z(f)(3),
a taxpayer will be treated as selling fuel to
an unrelated person if such fuel is sold to
the unrelated person by a related person
(within the meaning of section 45Z(f)(3)
and paragraph (b)(36) of this section).
(v) Examples. The following examples
illustrate the definition of the term quali-
fied sale.
(A) Example 1. Qualified sale for use in a trade
or business; ethanol to SAF. X produces ethanol and
sells the ethanol to Y, an unrelated person. As part of
its trade or business, Y uses the ethanol to produce a
synthetic blending component under ASTM D7566,
Annex A5 (ATJ-SPK). Y then blends the synthetic
blending component with petroleum-based kero-
sene to make a sustainable aviation fuel mixture. X
has made a qualified sale of the ethanol to Y under
paragraphs (b)(29)(i)(B) and (b)(29)(ii) of this sec-
tion because X sold the ethanol for use in Y’s trade
or business. See paragraphs (b)(34)(iii) and (b)(34)
(iv)(B) of this section regarding the application of
the definition of transportation fuel to Y’s synthetic
blending component.
(B) Example 2. Qualified sale for use in a trade
or business; RNG. X produces RNG that qualifies
as a transportation fuel and sells the RNG to Y, an
unrelated intermediary wholesaler and distributor.
X injects the RNG into a pipeline for resale and
distribution by Y. Y’s business consists of purchas-
ing RNG from different producers, distributing it
through a pipeline, and reselling it to customers who
may be dealers, distributors, retailers, or end users of
fuel. Y subsequently resells X’s RNG as part of Y’s
business. X has made a qualified sale of the RNG to
Y under paragraphs (b)(29)(i)(B) and (b)(29)(ii) of
this section because X sold the RNG for use in Y’s
trade or business.
(C) Example 3. Qualified sale made through
another member of consolidated group. X, a fuel
producer, and Y, an intermediary dealer, are mem-
bers of an affiliated group of corporations filing a
consolidated return. X produces transportation fuel
and sells the fuel to Y. Y resells the fuel to Z, an unre-
lated person. Z then sells the fuel at retail to a cus-
tomer and places the fuel in the customer’s fuel tank.
X is treated as selling the fuel to Z under paragraph
(b)(29)(iii) of this section. X has made a qualified
sale of the fuel to Z under paragraph (b)(29)(i)(C)
of this section.
(D) Example 4. Qualified sale made through
related person (other than another member of con-
solidated group). Same facts as in paragraph (b)
(29)(v)(C) of this section (Example 3), except that
X and Y are non-corporate entities under common
control and would be treated as a single employer
under the regulations prescribed under section 52(b)
of the Code. X and Y are thus related persons within
the meaning of section 45Z(f)(3) and paragraph (b)
(36) of this section. X is treated as selling the fuel to
Z under paragraph (b)(29)(iv) of this section. X has
made a qualified sale of the fuel to Z under paragraph
(b)(29)(i)(C) of this section.
(E) Example 5. Qualified sale by taxpayer that
produces and subsequently blends a fuel. X produces
9,000 gallons of renewable diesel that qualifies as a
transportation fuel. After production, X blends the
9,000 gallons of renewable diesel with 1,000 gal-
lons of petroleum-based diesel fuel that does not
qualify as a transportation fuel. X sells the resulting
10,000-gallon fuel blend to an unrelated person for
use in that person’s trade or business. X has made a
qualified sale of the 9,000 gallons of renewable die-
sel, as part of the fuel blend, under paragraphs (b)
(29)(i)(B) and (b)(29)(ii) of this section.
(30) SAF transportation fuel—(i) In
general. The term SAF transportation fuel
means sustainable aviation fuel as defined
in section 45Z(a)(3). That term means the
non-kerosene portion of any liquid fuel
that is a transportation fuel, is sold for use
in an aircraft, and:
(A) Meets the requirements of—
(1) ASTM D7566; or
(2) The Fischer Tropsch (FT) provi-
sions of ASTM D1655, Annex A1; and
(B) Is not derived from palm fatty acid
distillates or petroleum.
(ii) Synthetic blending component.
The term synthetic blending component
means the SAF portion of a fuel mixture
described in ASTM D7566 that meets the
specifications of one of the ASTM D7566
Annexes and is not derived from palm
fatty acid distillates or petroleum.
(iii) Sold for use in an aircraft. A syn-
thetic blending component sold to a per-
son that blends the fuel into a fuel mixture
described in ASTM D7566 is sold for use
in an aircraft within the meaning of sec-
tion 45Z(a)(3) and paragraph (b)(30)(i) of
this section.
(iv) FT hydrocarbons. The term FT
hydrocarbons means the FT hydrocar-
bons that are derived from biomass, used
to produce jet fuel described in section
A1.2.2.2 of ASTM D1655, Annex A1, and
not derived from palm fatty acid distillates
or petroleum.
(v) ASTM D7566 Annexes. The term
ASTM D7566 Annexes means any of the
annexes in ASTM D7566 that provide
the specifications for a pathway to create
a synthetic blending component that can
be blended with ASTM D1655-compliant
kerosene.
(vi) ASTM D1655, Annex A1. The term
ASTM D1655, Annex A1 means the FT
provisions of ASTM D1655, Annex A1
that are contained in section A1.2.2.2,
which provides a pathway for coprocess-
ing up to five percent of FT hydrocarbons
with petroleum to make a liquid fuel that
qualifies as jet fuel. For purposes of this
definition, the term petroleum includes
any conventionally sourced hydrocarbons
permitted under ASTM D1655, Annex
A1. Liquid fuel produced in accordance
with section A1.2.2.1 of ASTM D1655,
Annex A1 does not qualify for the sec-
tion 45Z credit because section A1.2.2.1
defines a pathway for producing a liq-
uid fuel from coprocessing an applicable
material (or materials derived therefrom)

Bulletin No. 2026–9 617 February 23, 2026
with a non-biomass feedstock. See section
45Z(d)(5)(A)(iii).
(31) Secretary; IRS—(i) Secretary. The
term Secretary means the Secretary of the
Treasury or the Secretary’s delegate. See
section 7701(a)(11)(B).
(ii) IRS. The term IRS means the Inter-
nal Revenue Service.
(32) Section 45Z credit. The term sec-
tion 45Z credit means the clean fuel pro-
duction credit determined under section
45Z of the Code and the section 45Z reg-
ulations.
(33) Section 45Z regulations. The term
section 45Z regulations means the regula-
tions in this section, §§ 1.45Z-2 through
1.45Z-6, and 1.4101-1.
(34) Transportation fuel—(i) In gen-
eral. The term transportation fuel means,
pursuant to section 45Z(d)(5)(A), a fuel
that—
(A) Is suitable for use as a fuel in a
highway vehicle or aircraft;
(B) Has an emissions rate that is not
greater than 50 kilograms of CO
2
e per
mmBTU;
(C) Is not derived from coprocess-
ing an applicable material (or materials
derived from an applicable material) with
a feedstock that is not biomass; and
(D) Is not produced from a fuel for
which a section 45Z credit is allowable.
(ii) Suitable for use as a fuel in a high-
way vehicle or aircraft (suitable for use)—
(A) In general. A fuel is suitable for use
as a fuel in a highway vehicle or aircraft
(suitable for use) if the fuel has practical
and commercial fitness for use as a fuel in
a highway vehicle or aircraft, or may be
blended into a fuel mixture that has prac-
tical and commercial fitness for use as a
fuel in a highway vehicle or aircraft. A fuel
may possess this practical and commercial
fitness even though use in a highway vehi-
cle or aircraft is not the fuel’s predominant
use. However, a fuel does not possess this
practical and commercial fitness solely by
reason of its possible or rare use as a fuel
in a highway vehicle or aircraft. A fuel is
suitable for use at the point at which no
further production, refinement, or other
step is necessary before the fuel may be
sold in a qualified sale, except, as speci-
fied in paragraph (b)(34)(ii)(B) of this sec-
tion, for CANG. To be considered suitable
for use, a fuel need not actually be used
as a fuel in a highway vehicle or aircraft.
(B) CANG. CANG is suitable for use
once it is produced so that it is inter-
changeable with fossil natural gas and
would require only minimal processing
(for example, further compression or liq-
uefaction) to meet the specifications of
ASTM D8080.
(C) Fuels not requiring further pro-
cessing. A fuel that does not require fur-
ther processing and that may be blended
with or used as a component of taxable
fuel (within the meaning of section 4083
of the Code) is suitable for use.
(iii) Produced from a fuel for which a
section 45Z credit is allowable. A fuel is
produced from a fuel for which a section
45Z credit is allowable if a primary feed-
stock of the fuel meets the definition of
a transportation fuel under paragraph (b)
(34)(i) of this section, without regard to
paragraph (b)(34)(i)(D) of this section.
(iv) Examples. The following examples
illustrate the definition of the term trans-
portation fuel.
(A) Example 1. Suitable for use. X produces
diesel fuel that has practical and commercial fitness
for use as a fuel in a highway vehicle or aircraft.
The diesel fuel meets the description of low-GHG
diesel fuel in paragraph (b)(24)(ii)(C) of this sec-
tion, and no further production, refinement, or other
step is necessary before the fuel may be sold in a
qualified sale. X sells the diesel fuel to a purchaser
that uses it as marine diesel fuel. X’s diesel fuel sat-
isfies the suitable for use standard under paragraph
(b)(34)(ii) of this section, notwithstanding that the
diesel fuel ultimately is not used in a highway vehi-
cle or aircraft.
(B) Example 2. Produced from a fuel for which a
section 45Z credit is allowable. Y buys ethanol and
uses it as a primary feedstock to produce a synthetic
blending component under ASTM D7566, Annex
A5 (ATJ-SPK). The ethanol meets the definition
of a transportation fuel under paragraph (b)(34)(i)
of this section. Under paragraph (b)(34)(iii) of this
section, Y has produced the synthetic blending com-
ponent from a fuel for which a section 45Z credit is
allowable. Y’s synthetic blending component is not a
transportation fuel for purposes of section 45Z.
(35) Types and categories of transpor-
tation fuel. As used in section 45Z(b)(1)
(B)(i), the term type of transportation fuel
refers to a particular kind of transporta-
tion fuel. For example, ethanol is one type
of transportation fuel. As used in section
45Z(b)(1)(B)(i), the term category of
transportation fuel means the unique pri-
mary feedstock and pathway (also known
as production process) used to produce a
type of transportation fuel. For example,
fermentation of U.S. corn starch is one
category of ethanol.
(36) Unrelated person. The term unre-
lated person means a person not related
to the taxpayer. The term has the same
meaning as the term unrelated party for
purposes of the certification required by
section 45Z(f)(1)(A)(i)(II)(aa). Persons
are treated as related to each other if
such persons would be treated as a single
employer under the regulations prescribed
under section 52(b) of the Code. See sec-
tion 45Z(f)(3).
(c) Applicability date. This section
applies to qualified sales occurring in tax-
able years ending on or after [date of pub-
lication of final regulations in the Federal
Register].
§ 1.45Z-2 General rules.
(a) Amount of credit—(1) In general.
For purposes of section 38, the section
45Z credit for any taxable year, with
respect to a given transportation fuel, is an
amount equal to the product of—
(i) The applicable amount for such fuel;
(ii) The total gallons or gallon equiva-
lents of such fuel that were—
(A) Produced by the taxpayer at a qual-
ified facility; and
(B) Sold by the taxpayer in a qualified
sale during the taxable year; and
(iii) The emissions factor for such fuel.
(2) Determination of whether fuel
is liquid or non-liquid; measurement.
Whether a fuel is liquid or non-liquid is
determined according to § 1.45Z-1(b)(20)
(ii). The volume of a liquid fuel is mea-
sured on the basis of gallons adjusted to
ambient pressure and temperature of 1
atmosphere and 60 degrees Fahrenheit.
The gallon equivalent of a non-liquid fuel
is calculated according to § 1.45Z-1(b)
(20)(iii).
(3) Calculation rules—(i) Rounding. If
the amount of any section 45Z credit, as
calculated under paragraph (a)(1) of this
section, is not a multiple of one cent, a
taxpayer must round such amount to the
nearest cent. A taxpayer must round up
any amount ending in 0.5 cents or more
and round down any amount ending in
less than 0.5 cents.
(ii) Pro rata allocation required for
sales of transportation fuel in common
storage--(A) In general. If a taxpayer sells
transportation fuel that is held in common
storage with other fuels that have different

February 23, 2026 618 Bulletin No. 2026–9
emissions rates, the taxpayer is treated as
selling a pro rata portion of each fuel pro-
duced after December 31, 2024, and held
in such common storage. As described in
§ 1.45Z-1(b)(27), the blending of fuels
while such fuels are held in common
storage does not constitute production of
a transportation fuel with a distinct emis-
sions rate.
(B) Example. In 2025, X produces
1,000,000 gallons of ethanol at three dif-
ferent facilities: 200,000 gallons, or 20%,
at Facility 1; 250,000 gallons, or 25%, at
Facility 2; and 550,000 gallons, or 55%, at
Facility 3. The ethanol produced at Facil-
ity 1 has an emissions factor of 0.5. The
ethanol produced at Facility 2 has an emis-
sions factor of 0.1. The ethanol produced
at Facility 3 is not a transportation fuel and
no section 45Z credit may be determined
with respect to it. X places 1,000,000 gal-
lons of ethanol in common storage tanks.
In 2025, X sells 600,000 gallons of eth-
anol from the common storage tanks in
qualified sales. Of the 600,000 gallons
sold, 120,000 gallons (20%) are allocated
to Facility 1, 150,000 gallons (25%) are
allocated to Facility 2, and 330,000 gal-
lons (55%) are allocated to Facility 3. X
otherwise satisfies the requirements of
the section 45Z credit, and Facility 1 and
2 satisfy the prevailing wage and appren-
ticeship (PWA) requirements. Therefore,
X’s section 45Z credit amount is calcu-
lated as follows: ($1.06 x 120,000 x 0.5) +
($1.06 x 150,000 x 0.1) = ($127,200 x 0.5)
+ ($159,000 x 0.1) = $63,600 + $15,900
= $79,500. The result does not change if
ethanol produced before January 1, 2025,
was also in the common storage tanks.
(4) Applicable amount—(i) In general.
The applicable amount is either the base
amount for transportation fuel produced
at a qualified facility that does not satisfy
the PWA requirements, or the alternative
amount for transportation fuel produced at
a qualified facility that satisfies the PWA
requirements. The applicable amount is
subject to inflation adjustment for calendar
years beginning after 2024, as described
in paragraph (a)(4)(iv) of this section.
(ii) Base amount. The base amount is
either—
(A) For transportation fuel produced
on or before December 31, 2025, 20 cents
for transportation fuel which is not sus-
tainable aviation fuel (non-SAF transpor-
tation fuel) and 35 cents for SAF transpor-
tation fuel; or
(B) For transportation fuel produced
after December 31, 2025, 20 cents.
(iii) Alternative amount. The alterna-
tive amount is either—
(A) For transportation fuel produced
on or before December 31, 2025, $1.00
for non-SAF transportation fuel and $1.75
for SAF transportation fuel; or
(B) For transportation fuel produced
after December 31, 2025, $1.00.
(iv) Inflation adjustment—(A) In gen-
eral. For calendar years beginning after
2024, the applicable amount for any trans-
portation fuel is adjusted by multiplying
such amount by the inflation adjustment
factor for the calendar year in which the
qualified sale of the transportation fuel
occurs. If any inflation adjusted amount is
not a multiple of one cent, such amount
will be rounded to the nearest multiple
of one cent. See section 45Z(c)(1). A tax-
payer must round up any amount ending
in 0.5 cents or higher and round down any
amount ending in less than 0.5 cents.
(B) Inflation adjustment factor. The
term inflation adjustment factor means the
inflation adjustment factor determined and
published by the Secretary of the Treasury
or the Secretary’s delegate (Secretary)
pursuant to section 45Y(c) of the Code,
determined by substituting “calendar year
2022” for “calendar year 1992” in section
45Y(c)(3). See section 45Z(c)(2). Accord-
ingly, the inflation adjustment factor is,
with respect to a calendar year, a fraction
whose numerator is the gross domestic
product (GDP) implicit price deflator for
the preceding calendar year and whose
denominator is the GDP implicit price
deflator for the calendar year 2022. The
term GDP implicit price deflator means
the most recent revision of the implicit
price deflator for the GDP as computed
and published by the Department of Com-
merce before March 15 of the calendar
year. See section 45Y(c)(3).
(C) Publication of inflation adjustment
factor. The Secretary will publish guid-
ance in the Internal Revenue Bulletin (see
§ 601.601 of this chapter) no more fre-
quently than annually that will provide the
inflation adjustment factor.
(b) Timing of credit—(1) In general.
A taxpayer is eligible to claim the section
45Z credit only for the taxable year in
which the qualified sale of a transportation
fuel occurs, provided the taxpayer meets
all other requirements to claim the credit.
(2) Credit not allowed for production
before January 1, 2025. The section 45Z
credit is not allowed for transportation
fuel produced before January 1, 2025.
(3) Qualified sale timing—(i) Produc-
tion. Production of a transportation fuel
may take place in an earlier taxable year
than the taxable year in which the quali-
fied sale of such fuel occurs. However, a
qualified sale cannot take place before the
date the fuel is produced.
(ii) Sale to unrelated person. A qual-
ified sale occurs at the time of the sale
to the unrelated person. If a taxpayer is
treated as selling transportation fuel to
an unrelated person under § 1.45Z-1(b)
(29)(iii) or (iv) (involving sales by related
persons), the qualified sale occurs at the
time the related person sells the fuel to an
unrelated person.
(iii) Example of qualified sale timing for
member of consolidated group. X, a fuel
producer, and Y, an intermediary dealer,
are members of an affiliated group of cor-
porations filing a consolidated return. The
affiliated group, including X and Y, uses
the calendar year as its taxable year. In
2025, X produces transportation fuel and
sells the fuel to Y. In 2026, Y resells the
fuel to Z, an unrelated person. Z then sells
the fuel at retail to a customer and places
the fuel in the customer’s fuel tank. For
purposes of section 45Z, X is treated as
selling the fuel to Z under § 1.45Z-1(b)
(29)(iii) and has made a qualified sale. X’s
qualified sale to Z occurs in 2026 when
Y sells the fuel to Z. Thus, X may only
claim a section 45Z credit for that fuel for
the 2026 taxable year (assuming all other
requirements for the section 45Z credit are
met).
(c) Emissions factor—(1) In general.
Under section 45Z(b)(1)(A), the emis-
sions factor of a transportation fuel is an
amount equal to the quotient of—
(i) An amount equal to—
(A) 50 kilograms (kg) of equivalent
carbon dioxide (CO
2
e) per 1,000,000 Brit-
ish thermal units (mmBTU); minus
(B) The emissions rate for such fuel;
divided by—
(ii) 50 kg of CO
2
e per mmBTU.
(2) Rounding—(i) In general. If the
emissions factor of a transportation fuel

Bulletin No. 2026–9 619 February 23, 2026
is not a multiple of 0.1, a taxpayer must
round such amount to the nearest multi-
ple of 0.1. A taxpayer must round up if
the digit in the hundredths place is a 5 or
higher, and round down if the digit in the
hundredths place is less than 5.
(ii) Example. Y produces a transporta-
tion fuel with an emissions rate of 21.25
kg of CO
2
e per mmBTU. The emissions
factor of Y’s fuel is initially calculated as
follows: (50 – 21.25) ÷ 50 = 0.575. 0.575
is not a multiple of 0.1, so Y must round
the emissions factor to the nearest multi-
ple of 0.1. Thus, the emissions factor of
Y’s fuel is 0.6. If instead the emissions
rate of Y’s fuel were 23 kg of CO
2
e per
mmBTU, resulting in an initial calculation
of the emissions factor as 0.54, Y must
round the emissions factor down to 0.5.
(d) Emissions rate—(1) In general.
The emissions rate for a transportation
fuel is such fuel’s lifecycle greenhouse
gas (GHG) emissions expressed as kg of
CO
2
e per mmBTU, either as established
in the applicable emissions rate table pub-
lished by the Secretary (pursuant to sec-
tion 45Z(b)(1)(B) and paragraph (e) of
this section), or, in the case of any trans-
portation fuel for which an emissions rate
has not been established in the applicable
emissions rate table, a provisional emis-
sions rate (PER) determined by the Secre-
tary with respect to such fuel (pursuant to
section 45Z(b)(1)(D) and paragraph (f) of
this section).
(2) Negative emissions rates—(i) In
general. The emissions rate of a transpor-
tation fuel produced after December 31,
2025, may not be less than zero (with a
resulting emissions factor greater than
one), unless such fuel is produced from
a primary feedstock that is an animal
manure. This limitation also applies to any
transportation fuel (as defined in § 1.45Z-
1(b)(34)) used as a production input.
(ii) Examples. The following exam-
ples illustrate the rules regarding negative
emissions rates.
(A) Example 1. Prohibition of negative emis-
sions rate except for transportation fuel produced
from animal manure. In 2026, X produces renewable
natural gas (RNG) by anaerobic digestion and bio-
gas upgrading of an animal manure, and Y produces
RNG by anaerobic digestion and biogas upgrading
of landfill gas. The emissions rates of X’s and Y’s
fuels are both, without further adjustment, -10 kg of
CO
2
e per mmBTU. X’s fuel is produced from ani-
mal manure, so no adjustment of the emissions rate
is necessary and the emissions factor for X’s fuel is
1.2. However, because Y’s fuel is not produced from
animal manure, the emissions rate for Y’s fuel must
be adjusted up to 0, so the emissions factor for Y’s
fuel is 1.0.
(B) Example 2. Prohibition of negative emissions
rate for transportation fuel used as production input.
In 2026, Z produces ethanol by fermentation of U.S.
corn starch. As part of the ethanol production pro-
cess, Z buys alternative natural gas and uses it as
process fuel. The alternative natural gas meets the
definition of a transportation fuel under § 1.45Z-1(b)
(34) and has an emissions rate of -100 kg of CO
2
e
per mmBTU. However, the alternative natural gas is
not derived from animal manure and serves only as a
process fuel, not the primary feedstock (see § 1.45Z-
1(b)(34)(iii), § 1.45Z-1(b)(35), and paragraph (e)
of this section), for Z’s ethanol. For purposes of
accounting for the alternative natural gas when cal-
culating the emissions rate for Z’s ethanol, Z must
adjust the emissions rate of the alternative natural
gas up to 0 kg of CO
2
e per mmBTU.
(3) Indirect land use change excluded.
For transportation fuel produced after
December 31, 2025, the emissions rate
of a fuel does not include any emissions
attributed to indirect land use change. See
section 45Z(b)(1)(B)(iv).
(e) Emissions rate table—(1) In gen-
eral. As required by section 45Z(b)(1)(B)
(i), the Secretary will annually publish a
table that establishes the emissions rate
for similar types and categories of trans-
portation fuels (as defined in § 1.45Z-1(b)
(35)) based on the lifecycle GHG emis-
sions for such fuels expressed as kg of
CO
2
e per mmBTU (emissions rate table),
which a taxpayer must use for purposes
of the section 45Z credit. The emissions
rate table for each calendar year will be
published in the Internal Revenue Bulletin
(see § 601.601 of this chapter). A taxpayer
must use the applicable emissions rate
table as specified in paragraph (e)(2) of
this section.
(2) Applicable emissions rate table—
(i) In general. For taxable years beginning
after December 31, 2024, the applicable
emissions rate table for a taxpayer is the
emissions rate table that is in effect on the
first day of the taxpayer’s taxable year of
production. For production after Decem-
ber 31, 2024, in taxable years beginning
before January 1, 2025, the applicable
emissions rate table is the emissions rate
table effective for 2025.
(ii) Use of applicable emissions rate
table. A taxpayer that produces a fuel for
which the applicable emissions rate table
establishes an emissions rate must use the
corresponding allowed methodologies, as
specified in paragraph (e)(3) of this sec-
tion, provided in such table to determine
the emissions rate for all such fuel pro-
duced during the taxpayer’s taxable year.
(iii) Emissions rate established in
emissions rate table—(A) In general. An
emissions rate table establishes the emis-
sions rate for a fuel if the emissions rate
table includes both the type and category
of fuel. An emissions rate table does not
establish the emissions rate for a fuel if
such table includes the type but not the
category of fuel.
(B) Effect of additions to methodology.
If an emissions rate table does not initially
include a type or category of fuel but an
allowed methodology is updated to add
such type or category of fuel during the
calendar year, then that type or category
of fuel will be considered included in such
emissions rate table.
(iv) Examples. The following examples
illustrate the rules regarding the applica-
ble emissions rate table.
(A) Example 1. General rule for identifying
applicable emissions rate table. X, a calendar year
taxpayer, is a fuel producer. In 2025, X produces
biodiesel by transesterification of U.S. soybean oil.
The emissions rate table for calendar year 2025
includes both biodiesel, the type of fuel X produces,
and transesterification of U.S. soybean oil, the cate-
gory of biodiesel X produces. Therefore, the emis-
sions rate table for calendar year 2025 establishes the
emissions rate for X’s biodiesel and is the applicable
emissions rate table for all of X’s production of such
biodiesel in 2025.
(B) Example 2. Type or category of fuel added
to allowed methodology. Y, a calendar year taxpayer,
is a fuel producer. In 2025, Y produces biodiesel
by transesterification of Canadian soybean oil. The
emissions rate table for calendar year 2025 includes
the type of fuel Y produces, biodiesel. However, the
2025 emissions rate table for calendar year 2025
does not include transesterification of Canadian
soybean oil, the category of biodiesel Y produces.
The initial version of the 45ZCF-GREET model, an
allowed methodology, released January 15, 2025,
also includes the type but not the category of fuel Y
produces. On June 1, 2025, the U.S. Department of
Energy (DOE) publicly releases an updated version
of the 45ZCF-GREET model that adds the transes-
terification of Canadian soybean oil for biodiesel.
Because the update to the 45ZCF-GREET model
adds the category of biodiesel Y produces during the
calendar year, the emissions rate table for calendar
year 2025 is considered to include the category of
fuel Y produces. As such, the emissions rate table
for calendar year 2025 establishes the emissions rate
for Y’s biodiesel and is the applicable emissions rate
table for all of Y’s production of such biodiesel in
2025.
(3) Allowed methodologies for emis-
sions rate table—(i) In general. A taxpayer

February 23, 2026 620 Bulletin No. 2026–9
producing a fuel for which an emissions
rate is established by the applicable emis-
sions rate table must determine the fuel’s
emissions rate using the methodologies
allowed under paragraphs (e)(3)(iv) and
(v) of this section (allowed methodologies
or allowed methodology), as directed by
the applicable emissions rate table.
(ii) Use of most recent version of
allowed methodology—(A) In general.
A taxpayer must use the first version of
an allowed methodology that is publicly
available in the taxable year of produc-
tion and that includes the type and cate-
gory of such fuel (most recent version of
an allowed methodology). If an allowed
methodology is updated with respect to an
included type or category of fuel and such
updated methodology becomes publicly
available after the first day of the taxable
year of production but still within such
taxable year, then the taxpayer may, at its
discretion, treat such updated version as
the most recent version of such method-
ology.
(B) Examples. The following exam-
ples illustrate the rules regarding allowed
methodologies.
(1) Example 1. Choice after methodology update.
X, a calendar year taxpayer, is a fuel producer. In
2025, X produces biodiesel by transesterification of
U.S. soybean oil. The 2025 emissions rate table is
the applicable emissions rate table; it identifies the
45ZCF-GREET model as the only allowed meth-
odology. The initial version of the 45ZCF-GREET
model, released January 15, 2025, includes the
type and category of the fuel X produces. On June
1, 2025, the DOE publicly releases a version of the
45ZCF-GREET model that updates the transesteri-
fication pathway. Under paragraph (e)(3)(ii)(A) of
this section, X may use either the January 15, 2025,
or the June 1, 2025, version of the 45ZCF-GREET
model to calculate the emissions rate for all biodiesel
produced using such pathway in 2025.
(2) Example 2. Addition of type or category of
fuel to methodology without further updates. Y, a
calendar year taxpayer, is a fuel producer. In 2025,
Y produces biodiesel by transesterification of Cana-
dian soybean oil. The initial version of the 45ZCF-
GREET model, released January 15, 2025, includes
the type, but not the category, of fuel Y produces. On
June 1, 2025, the DOE publicly releases an updated
version of the 45ZCF-GREET model that adds the
transesterification of Canadian soybean oil for bio-
diesel. As such, the 2025 emissions rate table is
considered to include Y’s type and category of fuel;
it identifies the 45ZCF-GREET model as the only
allowed methodology. Under paragraph (e)(3)(ii)
(A) of this section, because the June 1, 2025, ver-
sion of the 45ZCF-GREET model is the first publicly
available version that includes Y’s type and category
of fuel, Y must use the June 1, 2025, version of the
45ZCF-GREET model to calculate the emissions
rate for all biodiesel it produced by transesterifica-
tion of Canadian soybean oil in 2025.
(3) Example 3. Choice of methodology after
addition of type or category of fuel to methodol-
ogy. Same facts as in paragraph (e)(3)(ii)(B)(2) of
this section (Example 2), except that on September
1, 2025, the DOE publicly releases a version of the
45ZCF-GREET model that updates the transesteri-
fication of Canadian soybean oil pathway. Under
paragraph (e)(3)(ii)(A) of this section, Y cannot use
the January 15, 2025, version of the 45ZCF-GREET
model, but may use either the June 1, 2025, or the
September 1, 2025, version of the 45ZCF-GREET
model to calculate the emissions rate for all biodiesel
it produced using such pathway in 2025.
(iii) 45ZCF-GREET model as a succes-
sor model—(A) In general. For purposes
of section 45Z(b)(1)(B)(ii), the 45ZCF-
GREET model is a successor model.
(B) Certain emissions accounting
rules—(1) In general. In the 45ZCF-
GREET model, for purposes of account-
ing for emissions associated with hydro-
gen (as a production input), natural gas
alternatives (as a production input or as
the transportation fuel produced), electric-
ity, and carbon capture and sequestration,
rules similar to the rules under section
45V of the Code apply, unless otherwise
specified by the 45ZCF-GREET model
with respect to technical modeling issues
that are subsequently identified by the
DOE or technical differences arising from
the application of the section 45V rules to
the 45ZCF-GREET model.
(2) Similar rule for use of energy attri-
bute certificates (EACs); incrementality.
With respect to the use of an EAC within
the 45ZCF-GREET model, rules similar
to § 1.45V-4(d) apply. When applying
the incrementality rules in § 1.45V-4(d)
(3)(i) for purposes of the 45ZCF-GREET
model, a taxpayer’s facility is considered
placed in service in the first taxable year
it produces a transportation fuel. Thus,
the electricity-generating facility that
produced the unit of electricity to which
the EAC relates must have a commercial
operations date (COD) that is no more
than 36 months before the first day of the
taxable year that the facility for which the
EAC is retired first produced a transporta-
tion fuel, or, if the electricity represented
by the EAC is produced by an electrici-
ty-generating facility that uses carbon
capture and sequestration (CCS) technol-
ogy, such technology has a placed in ser-
vice date that is no more than 36 months
before the first day of the taxable year that
the facility for which the EAC is retired
first produced a transportation fuel.
(3) Example. Similar incrementality
rules applied to existing fuel production
facility. X owns and operates Facility,
which has produced ethanol by fermen-
tation of U.S. corn starch since 2002. On
January 1, 2024, X finishes upgrading
Facility, so that the ethanol produced at
Facility has an emissions rate that is less
than 50 kg of CO
2
e per mmBTU. For
purposes of accounting for emissions
associated with electricity, X purchases
and retires EACs and uses those EACs
when calculating the emissions rate of
its ethanol. Although Facility has been
operating since 2002, it only began pro-
ducing a transportation fuel on January 1,
2024. For purposes of applying the incre-
mentality rules to EACs used within the
45ZCF-GREET model, Facility is consid-
ered placed in service on January 1, 2024.
Thus, an electricity generating facility that
produced a unit of electricity to which the
EACs relate must have a COD no earlier
than January 1, 2021.
(iv) Methodology for non-SAF trans-
portation fuel. If the applicable emissions
rate table establishes the emissions rate
for a non-SAF transportation fuel, then a
taxpayer producing such fuel must deter-
mine the fuel’s emissions rate using the
45ZCF-GREET model, as directed by the
applicable emissions rate table.
(v) Methodologies for SAF transporta-
tion fuel. If the applicable emissions rate
table establishes the emissions rate for a
SAF transportation fuel, then a taxpayer
producing such fuel must determine the
fuel’s emissions rate using the most recent
version of the Carbon Offsetting and
Reduction Scheme for International Avia-
tion (CORSIA) Default Life Cycle Emis-
sions Values for CORSIA Eligible Fuels
lifecycle approach (CORSIA Default) or
the CORSIA Methodology for Calculat-
ing Actual Life Cycle Emissions Values
lifecycle approach (CORSIA Actual)
(as described in § 1.45Z-1(b)(10)(ii)), or
the 45ZCF-GREET model, as directed
by the applicable emissions rate table. A
taxpayer may choose, for each type and
category of SAF transportation fuel that
it produces, which of these methodologies
to use. For a given type and category of
SAF transportation fuel, a taxpayer must
use the same methodology to calculate

Bulletin No. 2026–9 621 February 23, 2026
lifecycle GHG emissions associated with
all stages of SAF production, from feed-
stock production through distribution. See
§ 1.45Z-5, Procedures for certification of
lifecycle greenhouse gas emissions rates,
for information on how to certify compli-
ance with these methodologies. For pur-
poses of section 45Z(b)(1)(B)(iii)(II), the
45ZCF-GREET model is a similar meth-
odology to CORSIA.
(vi) Additional instructions on method-
ologies. A taxpayer must use an allowed
methodology in accordance with the
applicable emissions rate table, accu-
rately enter all information requested by
such methodology, and follow all publicly
available instructions for the use of such
methodology.
(f) Provisional emissions rate (PER)—
(1) In general. If a taxpayer produces an
eligible fuel, as defined in § 1.45Z-1(b)
(12), then the taxpayer may file a petition
with the Secretary for a determination
of the emissions rate (provisional emis-
sions rate (PER)) for such eligible fuel
(PER petition). See section 45Z(b)(1)(D).
Before filing a PER petition, the taxpayer
must first submit a request to the DOE
for an emissions value (EV) for an eligi-
ble fuel (emissions value request (EVR)).
The DOE will consider such taxpayer the
emissions value applicant (EV applicant).
The EV applicant must receive a calcu-
lated emissions value letter (CEVL) from
the DOE for such fuel. Before submitting
an EVR, an EV applicant must review the
applicable emissions rate table and the
most recent version of the allowed meth-
odologies to ensure that the applicable
emissions rate table has not already estab-
lished the emissions rate for the EV appli-
cant’s type and category of fuel. After
obtaining a CEVL, the taxpayer may then
file a PER petition for the eligible fuel that
is the subject of the CEVL. The EV appli-
cant must submit an EVR to the DOE in
accordance with the procedures described
in paragraph (f)(3) of this section. The
taxpayer must submit a PER petition in
accordance with the procedures described
in paragraph (f)(4) of this section. The
DOE and the IRS, respectively, will deny
any EVR or PER petition that does not fol-
low the procedures in this paragraph (f).
(2) Threshold requirements. An EV
applicant may submit an EVR, and subse-
quently a PER petition, only for an eligible
fuel. The DOE and the IRS, respectively,
will deny any EVR or PER petition for a
type and category of fuel included in the
applicable emissions rate table. Addition-
ally, the DOE and the IRS, respectively,
will deny any EVR or PER petition based
on a facility rather than a type or category
of fuel.
(3) Procedures for requesting emis-
sions value from DOE—(i) In general.
The DOE will publish specific guidance
and procedures for an EV applicant to
submit an EVR to the DOE. An EV appli-
cant that submits an EVR must follow
the procedures specified by the DOE to
request and obtain such emissions value,
including the DOE’s Section 45Z EVR
process instructions (Instructions). The
DOE will evaluate an EVR using the
same well-to-wheel system boundary
that the 45ZCF-GREET model employs.
As used in this paragraph (f)(3), the term
well-to-wheel includes well-to-wake with
respect to aviation fuel. Additionally, the
DOE will treat background data parame-
ters in the 45ZCF-GREET model (fixed
data that a 45ZCF-GREET model user
cannot change) as background data (fixed
data that an EV applicant cannot change)
in evaluating an EVR. For purposes of
accounting for emissions associated with
hydrogen (as a production input), natural
gas alternatives (as a production input or
as the transportation fuel produced), elec-
tricity, and carbon capture and sequestra-
tion, rules similar to the rules under sec-
tion 45V apply, unless otherwise specified
by the DOE with respect to subsequent
technical modeling issues or technical dif-
ferences arising from the application of the
section 45V rules to an eligible fuel. The
DOE may decline to review an EVR that
is not responsive, including an EVR that
is not for an eligible fuel or an EVR that
is incomplete. An EV applicant seeking a
new emissions value for a given type and
category of fuel after the DOE has com-
pleted its analysis may reapply only if the
EV applicant wishes to resubmit its EVR
with new or revised technical information
or clarifications related to the information
previously submitted. An EVR is com-
plete once the DOE either issues the EV
applicant a CEVL or denies the EVR.
(ii) Required information for an EVR—
(A) EVR for an eligible fuel that is not a
category of hydrogen. An EV applicant
submitting an EVR for an eligible fuel that
is not a category of hydrogen must submit
the following information to the DOE:
(1) Specific sections of the Class 3
front-end engineering and design (FEED)
study (or studies) as defined by the Asso-
ciation for the Advancement of Cost
Engineering (AACE) International Rec-
ommended Practice No. 18R-97, or sim-
ilar indication of project maturity such as
project specification and cost estimation
sufficient to inform a final investment
decision, as determined by the DOE, that
has been completed for each qualified
facility at which the applicant produces
the eligible fuel, as described further in
the Instructions; and
(2) A completed Section 45Z EVR
Form, as described in the Instructions.
(B) EVR for an eligible fuel that is a
category of hydrogen. An EV applicant
submitting an EVR for an eligible fuel
that is a category of hydrogen must first
submit a section 45V Emissions Value
Request Application under the process for
a provisional emissions rate determination
for the section 45V credit, as described in
§ 1.45V-4(c). An EV applicant submit-
ting an EVR for an eligible fuel that is a
category of hydrogen must submit to the
DOE, in addition to the general require-
ments in paragraph (f)(3)(ii)(A) of this
section, the letter obtained under the sec-
tion 45V emissions value request process
from the DOE stating the well-to-gate
emissions value that the DOE determined
with respect to the facility’s hydrogen pro-
duction pathway and the control number
that the DOE assigned to the section 45V
Emissions Value Request Application. If
the EV applicant produces that category
of hydrogen at multiple facilities, such
applicant will need to provide this infor-
mation for each facility. Once such an
EV applicant goes through the section
45V emissions value request process and
then submits their EVR for purposes of
section 45Z, the DOE may issue a CEVL
that includes an emissions value that fully
accounts for the well-to-wheel emissions
of that category of hydrogen.
(4) Procedures for requesting PER
determination—(i) In general. To request
a PER determination, a taxpayer must
file a PER petition with the Form(s) 7218
included with the taxpayer’s timely filed
(including extensions) Federal income tax

February 23, 2026 622 Bulletin No. 2026–9
return or Federal information return for
the first taxable year for which the tax-
payer claims the section 45Z credit for
the eligible fuel to which the PER petition
relates.
(ii) Required information for a PER
petition. A PER petition must include
the CEVL received from the DOE with
respect to the eligible fuel. If the taxpayer
obtained more than one emissions value
from the DOE, the taxpayer must include
the CEVL for each eligible fuel for which
it is claiming a section 45Z credit for
a given taxable year with the relevant
Form(s) 7218. The CEVL(s) included
with the Form(s) 7218 constitutes the PER
petition.
(5) Determination of a PER—(i) In
general. Upon the taxpayer’s filing of a
PER petition pursuant to paragraph (f)(4)
of this section, the PER petition will be
deemed accepted by the IRS. The IRS’s
deemed acceptance of such PER petition
is the Secretary’s determination of the
PER.
(ii) Reliance on emissions value. A
taxpayer may rely upon an emissions
value provided by the DOE in a CEVL
for purposes of calculating and claiming
the section 45Z credit, provided that all
information, representations, or other data
provided to the DOE in support of the
emissions value request are accurate. If
an applicable emissions rate table subse-
quently establishes an emissions rate for
a fuel subject to a CEVL, a taxpayer must
use the applicable emissions rate table and
may no longer rely on the CEVL for the
fuel.
(6) Not an examination of books and
records. The Secretary’s PER determina-
tion is not an examination or inspection of
books of account for purposes of section
7605(b) of the Code and does not preclude
or impede the IRS (under section 7605(b)
or any administrative provisions adopted
by the IRS) from later examining a return
or inspecting books or records with respect
to any taxable year for which the section
45Z credit is claimed. For example, any
information, representations, or other data
provided to the DOE in an EVR are still
subject to examination. Further, a PER
determination does not signify that the
IRS has determined that any other require-
ments of the section 45Z credit have been
satisfied for any taxable year.
(g) Emissions rates (including PER)
relate back to January 1, 2025. The first
emissions rate determined for a type and
category of fuel, whether established in an
applicable emissions rate table or through
the PER process, relates back to January
1, 2025.
(h) Applicability date. This section
applies to qualified sales occurring in
taxable years ending on or after [date of
publication of final regulations in the Fed-
eral Register], except that paragraph (e)
of this section applies to qualified sales
occurring in taxable years ending on or
after January 10, 2025.
Par. 3. Sections 1.45Z-4 through
1.45Z-6 are added to read as follows:
§ 1.45Z-4 Special Rules.
(a) Registered production in the United
States required. No section 45Z credit is
determined with respect to any transporta-
tion fuel unless the taxpayer is registered,
or is treated as being registered, as a pro-
ducer of clean fuel under section 4101 of
the Code at the time of production and
the fuel is produced in the United States,
which includes any territory of the United
States. See § 1.45Z-6(b) for special rules
regarding registration if the taxpayer is
not the producer. See § 1.4101-1 for the
registration rules that apply for purposes
of the section 45Z credit.
(b) Anti-stacking rules—(1) In gen-
eral. This paragraph (b) provides rules
for determining whether an anti-stacking
credit (as defined in § 1.45Z-1(b)(28)(ii))
has been allowed for a taxable year with
respect to a facility. Section 45Z(d)(4)(B).
(2) Determination of qualified facil-
ity—(i) In general. The determination of
whether a facility is a qualified facility
must be made separately for each tax-
able year. Whether a facility is a qualified
facility for a given taxable year depends
on whether the facility produced trans-
portation fuel sold during that taxable
year and whether an anti-stacking credit
was allowed for that taxable year with
respect to the facility. A facility may be a
qualified facility in one taxable year but
not in another taxable year. If a taxpayer
produces transportation fuel at multiple
facilities, the determination of whether the
fuel was produced at a qualified facility is
made separately for each facility.
(ii) Section 48(a)(15) election. A sec-
tion 48(a)(15) election is irrevocable, and
if made, will permanently disqualify a
facility from being a qualified facility for
purposes of section 45Z for the taxable
year of the election and all subsequent
taxable years.
(iii) Carbon capture equipment at a
facility. In the case of any transportation
fuel produced at a facility that includes
carbon capture equipment for which the
section 45Q credit is allowed for the tax-
able year, that facility is not a qualified
facility, and no section 45Z credit will be
determined with respect to the facility for
the taxable year.
(3) Examples. The following examples
illustrate the application of the anti-stack-
ing rules. For purposes of these examples,
assume that X and Y are unrelated C cor-
porations and that all other requirements
for an anti-stacking credit are met.
(i) Example 1. Interaction of section 45Z and
section 45V credits; transportation fuel and quali-
fied clean hydrogen produced at the same facility by
persons with the same taxable year. During 2025 and
2026, X, a calendar year taxpayer, produces trans-
portation fuel at a facility and sells the fuel in quali-
fied sales in 2025 and 2026. X is otherwise eligible to
claim the section 45Z credit with respect to the trans-
portation fuel it produces at the facility. During 2025
and 2026, Y, a calendar year taxpayer, produces qual-
ified clean hydrogen (as defined in section 45V(c)
(2)) at the same facility. Y claims and is allowed a
section 45V credit with respect to the facility for
2025, but not for 2026. No other person is allowed
a section 45V credit with respect to the facility for
2025 or 2026. Because Y is allowed a section 45V
credit with respect to the facility for 2025, the facility
is not a qualified facility for purposes of section 45Z
for 2025 and X is not eligible to claim a section 45Z
credit with respect to the facility for 2025. Because
no section 45V credit is allowed with respect to the
facility for 2026, the facility is a qualified facility for
purposes of section 45Z for 2026. Therefore, X is eli-
gible to claim a section 45Z credit with respect to the
facility for 2026.
(ii) Example 2. Interaction of section 45Z and
section 45V credits; transportation fuel and quali-
fied clean hydrogen produced at the same facility by
persons with different taxable years. During 2025,
X, a calendar year taxpayer, produces transporta-
tion fuel at a facility and sells the fuel in a quali-
fied sale. X is otherwise eligible to claim the section
45Z credit with respect to the facility. During 2025,
Y produces qualified clean hydrogen (as defined in
section 45V(c)(2)) at the same facility. Y has a tax-
able year of October 1 to September 30. Y claims
and is allowed a section 45V credit with respect to
the facility for its taxable year of October 1, 2024,
to September 30, 2025, but not for its taxable year
of October 1, 2025, to September 30, 2026. No other
person is allowed a section 45V credit with respect to
the facility for any portion of 2025. The facility is not

Bulletin No. 2026–9 623 February 23, 2026
a qualified facility for purposes of section 45Z for
the period in 2025 for which Y is allowed a section
45V credit (that is, January 1 through September 30,
2025). However, the facility is a qualified facility for
purposes of section 45Z for the period in 2025 for
which no section 45V credit is allowed with respect
to the facility (that is, October 1 through December
31, 2025). Therefore, X is eligible to claim a section
45Z credit with respect to the facility for 2025, but
only for the period during which the facility is a qual-
ified facility (that is, October 1 through December
31, 2025).
(iii) Example 3. Interaction of section 45Z credit
and section 48(a)(15) election. During 2025, X,
a calendar year taxpayer, produces transportation
fuel at a facility and sells the fuel in a qualified sale.
During 2025, X also produces qualified clean hydro-
gen (as defined in section 45V(c)(2)) at the same
facility, which is a specified clean hydrogen produc-
tion facility (as defined in section 48(a)(15)(C)). X
is otherwise eligible to claim the section 45Z credit
and to make a section 48(a)(15) election with respect
to the facility. For 2025, X makes an election under
section 48(a)(15) to treat the facility as energy prop-
erty for purposes of the energy credit under section
48. X claims and is allowed the section 48 credit.
Because the transportation fuel and the qualified
clean hydrogen are produced at the same facility,
and X is allowed a section 48 credit attributable to
a section 48(a)(15) election with respect to the facil-
ity for 2025, the facility is not a qualified facility for
purposes of section 45Z for 2025. Because the sec-
tion 48(a)(15) election is irrevocable, the facility also
will not be a qualified facility for purposes of section
45Z for any subsequent taxable year. Therefore, X
is not eligible to claim the section 45Z credit with
respect to the facility for 2025 or for any subsequent
taxable year.
(iv) Example 4. Interaction of section 45Z and
section 45Q credits; transportation fuel produced at
a facility that includes carbon capture equipment.
During 2025 and 2026, X, a calendar year taxpayer,
produces transportation fuel at a facility and sells
the fuel in a qualified sale. X is otherwise eligible to
claim the section 45Z credit with respect to the facil-
ity. The facility includes carbon capture equipment
(within the meaning of section 45Q). Y, a calendar
year taxpayer, owns and uses the carbon capture
equipment at the facility to capture carbon oxide.
During 2025, Y utilizes or disposes of the carbon
oxide in a manner that qualifies for the section 45Q
credit. Y claims and is allowed a section 45Q credit
with respect to the facility for 2025, but not for 2026.
No other person is allowed a section 45Q credit with
respect to the facility for 2025 or 2026. Because Y
is allowed a section 45Q credit with respect to the
facility for 2025, the facility is not a qualified facility
for purposes of section 45Z for 2025, and X is not
eligible to claim a section 45Z credit with respect to
the facility for 2025. Because no section 45Q credit
is allowed with respect to the facility for 2026, the
facility is a qualified facility for purposes of section
45Z for 2026. Therefore, X is eligible to claim a sec-
tion 45Z credit with respect to the facility for 2026.
(c) Anti-abuse rules. The rules of
section 45Z and the section 45Z regula-
tions must be applied in a manner con-
sistent with the purposes of section 45Z
and the section 45Z regulations (and the
regulations in this chapter under sections
6417 and 6418 related to the section 45Z
credit). These purposes include incentiv-
izing the domestic production and use
of clean transportation fuel and ensur-
ing that taxpayers do not circumvent
the feedstock origin and anti-stacking
rules. Therefore, no section 45Z credit
is determined if a taxpayer’s primary
purpose in producing and selling a trans-
portation fuel is to obtain the benefit of
the section 45Z credit in a manner that
is wasteful, such as discarding, disposing
of, or destroying the transportation fuel
without putting it to a productive use.
Whether the production and sale of trans-
portation fuel is consistent with the pur-
poses of section 45Z and the section 45Z
regulations (and the regulations in this
chapter under sections 6417 and 6418
related to the section 45Z credit) is based
on all facts and circumstances.
(d) Production attributable to the tax-
payer—(1) In general. Except as provided
in paragraph (e)(2) of this section, in the
case of a facility in which more than one
person has an ownership interest (and the
arrangement is not classified as a partner-
ship for Federal tax purposes), production
from the facility is allocated among those
persons in proportion to their respective
ownership interests in the gross sales from
the facility. Each owner’s respective allo-
cable share of the section 45Z credit is
based on each owner’s allocable share of
production, determined pursuant to sec-
tion 45Z and the section 45Z regulations.
See section 45Z(f)(2).
(2) Example. X, Y, and Z are all cal-
endar year taxpayers, and each owns an
interest in Facility, which is a qualified
facility. X has a 45 percent ownership
interest in Facility, Y has a 35 percent
ownership interest in Facility, and Z has
a 20 percent ownership interest in Facil-
ity. Gross sales from Facility are allocated
among X, Y, and Z in proportion to their
ownership interests. During 2025, Facility
produced 10 million gallons of transporta-
tion fuel. X, Y, and Z will each determine
the amount of their section 45Z credit for
2025 based on their allocable share of the
10 million gallons of transportation fuel
produced at Facility during 2025. Thus,
X will determine the amount of its section
45Z credit based on 4.5 million gallons,
Y will determine the amount of its section
45Z credit based on 3.5 million gallons,
and Z will determine the amount of its
section 45Z credit based on 2 million gal-
lons.
(3) Section 761(a) election. If a facility
is owned through an unincorporated orga-
nization that has made a valid election
under section 761(a) of the Code, each
member’s undivided ownership interest
in the facility will be treated as a separate
facility owned by the member.
(e) No requirement of facility owner-
ship—(1) In general. A taxpayer is not
required to own the qualified facility at
which the taxpayer produces transporta-
tion fuel in order for a section 45Z credit
to be determined with respect to that fuel.
(2) Application of production attribu-
tion rules if taxpayer does not own facil-
ity. If a taxpayer produces transportation
fuel at a facility owned by another person,
production of that fuel will be attributed to
the taxpayer unless otherwise specified in
the Code or in the section 45Z regulations.
In the case of a production arrangement
under which multiple taxpayers produce
transportation fuel at a facility that is not
owned by all those taxpayers, production
of the transportation fuel will be allocated
among the taxpayers in proportion to their
respective interests in the gross sales from
that fuel, as determined under the appli-
cable contract or other legal arrangement
with respect to the fuel.
(f) Foreign feedstock and prohibited
foreign entity restrictions—(1) Foreign
feedstock restrictions. Transportation fuel
that is produced after December 31, 2025,
must be exclusively derived from a feed-
stock that was produced or grown in the
United States, Mexico, or Canada. See
section 45Z(f)(1)(A)(iii).
(2) Prohibited foreign entity restric-
tions—(i) Specified foreign entity. No
section 45Z credit is determined for any
taxable year of a taxpayer beginning after
July 4, 2025, if the taxpayer is a speci-
fied foreign entity (as defined in section
7701(a)(51)(B) of the Code). See section
45Z(f)(8)(A).
(ii) Other prohibited foreign entity.
No section 45Z credit is determined for
any taxable year of a taxpayer beginning
after July 4, 2027, if the taxpayer is a
foreign-influenced entity (as defined sec-
tion 7701(a)(51)(D) of the Code, without

February 23, 2026 624 Bulletin No. 2026–9
regard to section 7701(a)(51)(D)(i)(II)).
See section 45Z(f)(8)(B).
(g) Recordkeeping and substantia-
tion—(1) In general. A taxpayer claiming
a section 45Z credit must maintain records
sufficient to establish the taxpayer’s eligi-
bility for the section 45Z credit and the
amount of the credit claimed on the return.
At a minimum, those records must include
records:
(i) Establishing that each fuel produced
is a transportation fuel;
(ii) Establishing any relevant informa-
tion relating to the primary feedstock(s)
used to produce each such fuel;
(iii) Establishing that each fuel meets
any additional specifications for the type
of fuel described in § 1.45Z-1(b)(24) or
(30);
(iv) Substantiating how the emissions
rate for each fuel was determined (includ-
ing, if applicable, the specific type(s) and
category(ies) under the applicable emis-
sions rate table);
(v) Relating to any fuel testing obtained
by the taxpayer;
(vi) Establishing that each facility used
to produce fuel is a qualified facility;
(vii) Establishing the date each facility
was placed in service;
(viii) Establishing that each fuel was
sold in a qualified sale;
(ix) Establishing any certification from
an unrelated person and substantiating the
information therein; and
(x) Used for or related to any petition
for a provisional emissions rate (PER),
including raw data.
(2) Safe harbor for substantiation of
emissions rate. A taxpayer may substan-
tiate the emissions rate for a transporta-
tion fuel which is not sustainable avia-
tion fuel (non-SAF transportation fuel)
that was determined using the 45ZCF-
GREET model by obtaining certification
with respect to that fuel in substantially
the same form and manner described in
§ 1.45Z-5 for certifying an emissions rate
for SAF transportation fuel determined
using the 45ZCF-GREET model. A tax-
payer must provide the qualified certifier
with all information necessary to provide
the certification, as described in § 1.45Z-
5. The Secretary may provide other meth-
ods through which a taxpayer may sub-
stantiate the emissions rate for a non-SAF
transportation fuel. The Secretary will
prescribe any such methods in guidance
published in the Internal Revenue Bulletin
or in IRS forms, instructions, or publica-
tions. See §§ 601.601 and 601.602 of this
chapter.
(3) Safe harbor for substantiation of
qualified sale—(i) In general. A taxpayer
may substantiate a qualified sale of trans-
portation fuel by obtaining from the pur-
chaser a certificate in substantially the same
form as described in paragraph (g)(3)(ii) of
this section. If the certificate relates to a
single purchase, the taxpayer must obtain
the certificate from the purchaser prior
to or at the time of sale. If the certificate
relates to purchases made over a period of
time, the taxpayer must obtain the certifi-
cate from the purchaser prior to or at the
same time as the first of the sales to which
the certificate relates. A taxpayer receiving
a certificate from a purchaser must have
no reason to believe that any information
in the certificate regarding the use of the
transportation fuel is false. The Secretary
of the Treasury or the Secretary’s delegate
(Secretary) may provide other methods
through which a taxpayer may substantiate
a qualified sale. The Secretary will pre-
scribe any such methods in guidance pub-
lished in the Internal Revenue Bulletin or
in IRS forms, instructions, or publications.
See §§ 601.601 and 601.602 of this chapter.
(ii) Qualified sale model certificate—

Bulletin No. 2026–9 625 February 23, 2026
CERTIFICATE FOR QUALIFIED SALE OF TRANSPORTATION FUEL
(To support a taxpayer’s claim under section 45Z of the Internal Revenue Code.)
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
(Name, address, and Employer Identification Number (“EIN”) of Taxpayer)
The undersigned purchaser of transportation fuel (“Purchaser”) hereby certifies the following under the penalty of perjury:
______________________________________________________________________
Name of Purchaser
Type of transportation fuel purchased:_______________________________________
The transportation fuel to which this certificate applies will be (mark below):
_____ Used by Purchaser in the production of a fuel mixture;
_____ Used by Purchaser in a trade or business; or
_____ Sold by Purchaser at retail to another person and placed in the fuel tank of such other person.
This certificate applies to the following (complete as applicable):
_____This is a single purchase certificate:
1. _______________Invoice or delivery ticket number
2. _______________Number of gallons
_____This is a certificate covering all purchases under a specified account or order number:
1.________________Effective date
2.________________Expiration date (period not to exceed 1 year after the effective date)
3.________________Purchaser’s account number
Purchaser agrees to provide the person liable for tax with a new certificate if any information in this certificate changes.
Purchaser is unrelated (within the meaning of section 52(b) of the Code and the regulations thereunder) to the Taxpayer selling the
transportation fuel to which this certificate relates.
Purchaser understands that it may be liable for the penalty under section 6701 of the Code (relating to aiding and abetting an under-
statement of tax liability) if this is an erroneous certification.
Purchaser understands that the fraudulent use of this certificate may subject Purchaser and all parties making any fraudulent use of
this certificate to a fine or imprisonment, or both, together with the costs of prosecution.
__________________________________
Signature and date signed
__________________________________
Printed or typed name of person signing
__________________________________
Title of person signing
__________________________________
EIN of Purchaser
__________________________________
Address of Purchaser

February 23, 2026 626 Bulletin No. 2026–9
(h) Applicability date. This section
applies to qualified sales occurring in tax-
able years ending on or after [date of pub-
lication of final regulations in the Federal
Register].
§ 1.45Z-5 Procedures for certification
of lifecycle greenhouse gas emissions
rates.
(a) In general. This section provides
rules on certification from an unrelated
person for sustainable aviation fuel (SAF)
transportation fuel pursuant to section
45Z(f)(1)(A)(i)(II) of the Code.
(b) Certification requirements—(1) In
general. For each taxable year for which
a taxpayer claims a section 45Z credit for
SAF transportation fuel, the taxpayer must
obtain certification from an unrelated per-
son and include such certification with the
taxpayer’s Form 7218, which is filed with
the taxpayer’s Federal income tax return
or Federal information return, for each
qualified facility at which the taxpayer
produces SAF transportation fuel.
(2) Content. The certification described
in paragraph (b)(1) of this section must
be prepared by a qualified certifier and
signed by the qualified certifier under pen-
alty of perjury. The certification must con-
tain information that is in substantially the
same form as the model certification pro-
vided in paragraph (h) of this section and
must contain all information necessary to
complete the model certification. Specifi-
cally, the certification must include—
(i) A production statement described
in paragraph (c) of this section from the
qualified certifier regarding the production
of SAF transportation fuel, including that
the inputs used to determine the lifecycle
greenhouse gas (GHG) emissions rate of
the production process are accurate;
(ii) A conflict statement described in
paragraph (d) of this section from the
qualified certifier regarding conflicts of
interest;
(iii) A qualified certifier statement
described in paragraph (e) of this sec-
tion from the qualified certifier providing
information regarding the qualified certi-
fier, including documentation of the quali-
fied certifier’s qualifications;
(iv) A qualified facility statement
described in paragraph (f) of this sec-
tion from the qualified certifier provid-
ing certain general information about the
qualified facility at which the SAF trans-
portation fuel production undergoing cer-
tification occurred;
(v) Any documentation necessary to
substantiate the certification process given
the standards and best practices prescribed
by the qualified certifier’s accrediting
body as they apply to the circumstances of
the taxpayer and the qualified facility; and
(vi) Any other information or docu-
mentation required by applicable IRS tax
forms or form instructions.
(3) Qualified certifier—(i) CORSIA
methodologies. For taxpayers using the
Carbon Offsetting and Reduction Scheme
for International Aviation (CORSIA)
Default Life Cycle Emissions Values for
CORSIA Eligible Fuels lifecycle approach
(CORSIA Default) or the CORSIA Meth-
odology for Calculating Actual Life Cycle
Emissions Values lifecycle approach
(CORSIA Actual) to determine the emis-
sions rate for SAF transportation fuel, the
term qualified certifier means any indi-
vidual or organization that is unrelated to
the taxpayer and is not an employee of the
taxpayer, and that has an active accredi-
tation from International Sustainability
and Carbon Certification, Roundtable on
Sustainable Biomaterials, ClassNK, or
other sustainability certification scheme
approved by the ICAO.
(ii) 45ZCF-GREET model. For tax-
payers using the 45ZCF-GREET model
to determine the emissions rate for SAF
transportation fuel, the term qualified cer-
tifier means any individual or organization
that is unrelated to the taxpayer and is not
an employee of the taxpayer, and that has
an active accreditation—
(A) From the American National Stan-
dards Institute National Accreditation
Board to conduct validation and verifica-
tion in accordance with the requirements
of International Organization for Stan-
dardization (ISO) 14065; or
(B) As a verifier, lead verifier, or ver-
ification body under the California Air
Resources Board Low Carbon Fuel Stan-
dard (CARB LCFS) program.
(iii) Qualifications are methodology
specific. Qualified certifiers are quali-
fied to provide certification only for the
associated methodologies identified in
this paragraph (b)(3). A qualified certi-
fier must have active accreditation for the
associated methodology as of the date it
provides a certification to a taxpayer. A
taxpayer must use the qualified certifier
identified in this paragraph (b)(3) for the
identified emissions rate methodology
used by the taxpayer.
(c) Requirements for the production
statement. The requirements set forth in
this paragraph (c) apply to the production
statement required by paragraph (b)(2)(i)
of this section. See section 45Z(f)(1)(A)(i)
(II)(aa).
(1) Data accuracy. The production
statement must be a statement that the
qualified certifier performed a certification
sufficient for the IRS to determine that
any lifecycle GHG emissions data inputs
and the operation, during the applicable
taxable year, of the qualified facility that
produced the SAF transportation fuel for
which the section 45Z credit is claimed
are accurately reflected in—
(i) The number of gallons of SAF trans-
portation fuel produced by the taxpayer
that is entered on the Form 7218 with
which the certification is included; and
(ii) Either—
(A) The data the taxpayer input into
the allowed methodology under § 1.45Z-
2(e)(3) used to determine the lifecycle
GHG emissions rate that is entered on the
Form 7218 with which the certification is
included; or
(B) The data the taxpayer submitted in
its provisional emissions rate (PER) peti-
tion relating to the SAF transportation fuel
for which the taxpayer is claiming the sec-
tion 45Z credit, including data provided to
the U.S. Department of Energy (DOE) in
support of the taxpayer’s request for the
emissions value provided in the PER peti-
tion.
(2) Emissions value. If the production
statement includes the information speci-
fied in paragraph (c)(1)(ii)(B) of this sec-
tion, then the production statement must
also specify the emissions value received
from the DOE that was calculated using
such data, expressed in kilograms of equiv-
alent carbon dioxide (CO
2
e) per 1,000,000
British thermal units (mmBTU).
(3) Lifecycle GHG emissions rate and
production amount. The production state-
ment must specify the lifecycle GHG
emissions rate (expressed in kilograms
of CO
2
e per mmBTU) and the amount of
SAF transportation fuel produced by the

Bulletin No. 2026–9 627 February 23, 2026
taxpayer (expressed in gallons), that are
entered on the Form 7218 with which the
certification is included.
(d) Requirements for the conflict state-
ment—(1) In general. The conflict state-
ment required by paragraph (b)(2)(ii) of
this section must state that—
(i) The qualified certifier has not
received a fee based to any extent on the
value of any section 45Z credit that has
been or is expected to be claimed by the
taxpayer and no arrangement has been
made for such fee to be paid at any time
in the future;
(ii) The qualified certifier has not been
a party to any transaction involving the
sale of SAF transportation fuel the tax-
payer produced or in which the taxpayer
purchased primary feedstocks for the pro-
duction of such SAF transportation fuel;
(iii) The qualified certifier is unrelated
to the taxpayer, within the meaning of sec-
tion 52(b) and the regulations thereunder,
and is not an employee of the taxpayer; and
(iv) The qualified certifier is not mar-
ried to anyone who is related to, or an
employee of, the taxpayer.
(2) Additional attestations required in
certain circumstances. If the qualified cer-
tifier is acting in his or her capacity as a
partner in a partnership, an employee of
any person, whether an individual, corpo-
ration, or partnership, or an independent
contractor engaged by a person other than
the taxpayer, the attestations under para-
graphs (d)(1)(i) through (iv) of this sec-
tion must also be made with respect to the
partnership or the person that employs or
engages the qualified certifier.
(e) Requirements for the qualified cer-
tifier statement. The qualified certifier
statement required by paragraph (b)(2)(iii)
of this section must include the items set
forth in this paragraph (e):
(1) Certifier identifying information.
The qualified certifier’s name, address,
and certifier identification number (for
example, the CARB LCFS Verifier Exec-
utive Order Number);
(2) Qualification description. The qual-
ified certifier’s qualifications to conduct
the certification, including a description
of the certification the qualified certifier
received from the accrediting body;
(3) Partnership or employer identify-
ing information. If the qualified certifier is
acting in his or her capacity as a partner
in a partnership, an employee of any per-
son, whether an individual, corporation,
or partnership, or an independent con-
tractor engaged by a person other than the
taxpayer, the name, address, and certifier
identification number of the partnership
or the person that employs or engages the
qualified certifier;
(4) Signature. The signature of the
qualified certifier and the date of signa-
ture; and
(5) Certification purpose. A statement
that the certification was conducted for
Federal tax purposes.
(f) Requirements for the qualified facil-
ity statement. The qualified facility state-
ment required by paragraph (b)(2)(iv) of
this section must include the information
set forth in this paragraph (f) for the qual-
ified facility at which the SAF transporta-
tion fuel production undergoing certifica-
tion occurred:
(1) Facility location. The location of
the qualified facility;
(2) Facility description. A descrip-
tion of the qualified facility, including its
method of producing SAF transportation
fuel;
(3) Primary feedstock. The type(s) of
primary feedstock(s) used by the qualified
facility to produce the SAF transportation
fuel during the taxable year of production;
(4) Amount of primary feedstock. The
amount(s) of primary feedstock(s) used by
the qualified facility to produce the SAF
transportation fuel during the taxable year
of production;
(5) Primary feedstock source location.
The location(s) from which the qualified
facility sourced the primary feedstock(s)
used to produce the SAF transportation
fuel during the taxable year of production;
(6) Metering devices. A list of the
metering devices used to record any data
used by the qualified certifier to support
the production statement under paragraph
(c) of this section, along with a statement
that to the best of the certifier’s knowledge,
the device(s) underwent industry-appro-
priate quality assurance and quality con-
trol, and the accuracy and calibration of
the device has been tested in the year prior
to the time of observation by the qualified
certifier; and
(7) Emissions rate accuracy. Con-
firmation that the emissions rate of the
SAF transportation fuel produced during
the taxable year of production is accurate
to the higher of +/-5% or 2 kilograms of
CO
2
e per mmBTU.
(g) Timely certification required. A
certification described in paragraph (b)
(1) of this section that includes all infor-
mation required under paragraph (b)(2)
of this section is valid with respect to a
particular claim only if it is signed and
dated by the qualified certifier no later
than the due date, including extensions,
of the Federal income tax return or Fed-
eral information return for the taxable
year during which the SAF transportation
fuel undergoing certification is sold in a
qualified sale. In the case of a section 45Z
credit first claimed for the taxable year
on an amended return or administrative
adjustment request (AAR), a certification
described in paragraph (b)(1) of this sec-
tion that includes all information required
under paragraph (b)(2) of this section is
valid with respect to the claim only if it
is signed and dated by the qualified cer-
tifier no later than the date on which the
amended return or AAR is filed.
(h) Model certification.

February 23, 2026 628 Bulletin No. 2026–9
CERTIFICATION OF LIFECYCLE GREENHOUSE GAS EMISSIONS RATES FOR
SUSTAINABLE AVIATION FUEL PRODUCTION
Certification Identification Number: ______________________
(To support taxpayer’s claim related to sustainable aviation fuel (SAF) under section 45Z of the Internal Revenue Code.)
The undersigned qualified certifier (“Certifier”) hereby certifies the following:
This certificate applies to SAF produced by ______________________ (“SAF Producer”). ______________________________
(name, address, and EIN of SAF producer)
Registration number of the SAF producer: ______________________________
Number of gallons of SAF produced to which this certification relates: __________________________________
Lifecycle greenhouse gas emissions rate expressed in kilograms of CO
2
e per mmBTU: __________________________________
________: Initial here to affirmatively confirm that the emissions rate is accurate to the higher of +/- 5% or 2 kilograms of CO
2
e
per mmBTU.
Taxable year SAF undergoing certification was produced: _________________________________________________________
Location of qualified facility at which the SAF production undergoing certification occurred (“Facility”): ___________________
Facility description including its method of producing SAF: _______________________________________________________
Type(s) of primary feedstock(s) used by the Facility to produce SAF during the taxable year of production: _________________
Location(s) from which the Facility sourced the primary feedstock(s) used during the taxable year of production: _____________
______: Initial here to affirmatively state that the Certifier has verified that any metering device(s) used to support this certification
has been properly calibrated pursuant to industry-appropriate quality assurance and quality control standards, and the accuracy and
calibration of the device has been tested within the year prior to the time of observation by the Certifier. List the metering device(s)
and calibration date(s): _______________________________________________________________________________________
The Certifier performed a certification sufficient for the IRS to determine that any lifecycle greenhouse gas emissions data inputs
and the operation, during the applicable taxable year, of the Facility that produced the SAF for which the credit is claimed are accu-
rately reflected in —
The number of gallons of SAF produced by the taxpayer that is entered on the Form 7218 with which this certification is included;
and
Either (check the line that applies):
_____: The data the taxpayer input into the allowed methodology used to determine the lifecycle greenhouse gas emissions rate
that is entered on the Form 7218 with which this certification is included; or
_____: The data the taxpayer submitted in its provisional emissions rate (“PER”) petition relating to the SAF for which the tax-
payer is claiming the credit, including data provided to the U.S. Department of Energy (“DOE”) in support of the taxpayer’s request
for the emissions value provided in the PER petition.
Emissions value received from the DOE that was calculated using such data, expressed in kilograms of CO
2
e per mmBTU:
_______
The Certifier, and, if applicable, the partnership or the person that employs or engages the Certifier is/has not:

Bulletin No. 2026–9 629 February 23, 2026
1. Received a fee based to any extent on the value of any section 45Z credit that has been or is expected to be claimed by the tax-
payer and no arrangement has been made for such fee to be paid at any time in the future;
2. Been a party to any transaction involving the sale of SAF the taxpayer produced or in which the taxpayer purchased primary
feedstocks for the production of such SAF;
3. Related, within the meaning of section 52(b) of the Code and the regulations thereunder, to the taxpayer, or an employee of, the
taxpayer; or
4. Married to anyone who is related to, or an employee of, the taxpayer.
Certifier’s identifying information:
Certifier’s name: ___________________________________________________
Address: __________________________________________________________
Certifier ID number: _________________________________________________
Description of Certifier’s qualifications to conduct the certification, including a description of the certification Certifier received
from the relevant accrediting body.
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
If applicable, identifying information for the partnership or the person that employs or engages Certifier:
Name of partnership or employer: ____________________________________
Address: _________________________________________________________
Certifier ID number: ________________________________________________
This certification was conducted for Federal tax purposes.
Certifier has attached:
- Any documentation necessary to substantiate the certification process given the standards and best practices prescribed by the
Certifier’s accrediting body as they apply to the circumstances of the taxpayer and the qualified facility; and
- Any other information or documentation required by applicable IRS tax forms or form instructions.
Under penalty of perjury, Certifier declares that Certifier has examined this certification, including any accompanying documentation,
and, to the best of Certifier’s knowledge and belief, it is true, correct, and complete.
__________________________________
Signature and date signed
__________________________________
Printed or typed name of person signing
__________________________________
Title of person signing
__________________________________
Certifier identification number of the person signing

February 23, 2026 630 Bulletin No. 2026–9
(i) Applicability date. This section
applies to qualified sales occurring in tax-
able years ending on or after [date of pub-
lication of final regulations in the Federal
Register].
§ 1.45Z-6 Procedures for filing a claim
for the clean fuel production credit.
(a) Time and manner of filing a claim.
To claim the section 45Z credit, a taxpayer
must include a completed Form 7218 with
the taxpayer’s timely filed (including
extensions) Federal income tax return or
Federal information return for the taxable
year for which the taxpayer is claiming
the section 45Z credit. A separate Form
7218 is required for each qualified facility
at which transportation fuel for which the
taxpayer is claiming the section 45Z credit
is produced. A taxpayer must complete
Form 7218 in accordance with the instruc-
tions to that form and provide all informa-
tion required by the form and instructions.
A taxpayer must include with its Form
7218 any applicable certification required
by § 1.45Z-5.
(b) Proper claimant—(1) In general.
Except as provided in paragraph (b)(2) of
this section, only a taxpayer that is regis-
tered by the IRS as a producer of trans-
portation fuel at the time of production
may claim the section 45Z credit. See sec-
tion 45Z(f)(1)(A)(i)(I) of the Code. See
§ 1.4101-1 for rules related to registration,
including the activity letters, under which
producers of transportation fuel must be
registered to claim the section 45Z credit.
(2) Special rules—(i) Producer is a
disregarded entity. If a taxpayer owns an
entity that is disregarded as an entity sep-
arate from its owner within the meaning
of § 301.7701-2(c)(2)(i) of this chapter
(disregarded entity) that produces trans-
portation fuel, and such disregarded
entity is registered as a producer of trans-
portation fuel at the time of production,
the taxpayer that owns the disregarded
entity is treated as the registered producer
for purposes of claiming the section 45Z
credit. The registration number (within
the meaning of section 45Z(f)(1)(A)(i)
(I) and § 1.4101-1) of that disregarded
entity is attributed to the taxpayer. A tax-
payer claiming a section 45Z credit with
respect to transportation fuel produced
by a disregarded entity that it owns must
satisfy the recordkeeping requirements in
§ 1.45Z-4(g)(1).
(ii) Producer is a qualified subchapter
S subsidiary. If a taxpayer owns an entity
that is a qualified subchapter S subsidiary
within the meaning of section 1361(b)(3)
(B) of the Code (QSub) that produces
transportation fuel, and such QSub is
registered as a producer of transportation
fuel at the time of production, the tax-
payer that owns the QSub is treated as
the registered producer for purposes of
claiming the section 45Z credit. The reg-
istration number (within the meaning of
section 45Z(f)(1)(A)(i)(I) and § 1.4101-
1) of that QSub is attributed to the tax-
payer. A taxpayer claiming a section 45Z
credit with respect to transportation fuel
produced by a QSub that it owns must
satisfy the recordkeeping requirements in
§ 1.45Z-4(g)(1).
(iii) Producer is a member of a con-
solidated group. If a member of a con-
solidated group (as defined in § 1.1502-
1(b) and (h), respectively) that produces
transportation fuel is registered as a
producer of transportation fuel at the
time of production, the agent for such
consolidated group is treated as the reg-
istered producer for purposes of claim-
ing the section 45Z credit on the group’s
return. The registration number (within
the meaning of section 45Z(f)(1)(A)
(i)(I) and § 1.4101-1) of the member is
attributed to the agent when claiming the
section 45Z credit. The member produc-
ing the transportation fuel must satisfy all
applicable requirements of section 45Z
and the section 45Z regulations. For rules
applicable to the agent for a consolidated
group (generally the common parent),
see § 1.1502-77.
(c) Applicability date. This section
applies to qualified sales occurring in tax-
able years ending on or after [date of pub-
lication of final regulations in the Federal
Register].
§ 1.1361-4 [Amended]
Par. 4. Section 1.1361-4 is amended by
removing the comma after the language
“and (a)(9) of this section” in paragraph
(a)(1) and adding “and in § 1.4101-1(a)(3)
(iii),” in its place.
Par. 5. Section 1.4101-1 is added to
read as follows:
§ 1.4101-1 Registration.
(a) In general—(1) Overview. This
section provides rules relating to registra-
tion for purposes of the section 45Z credit.
See sections 4101(a)(1) and 45Z(f)(1)(A)
(i)(I).
(2) Letter of Registration required. A
person is registered under section 4101 of
the Code for purposes of the section 45Z
credit only if the IRS has issued a Letter
of Registration to the person under activ-
ity letter CN (in the case of a producer of
transportation fuel which is not sustain-
able aviation fuel (non-SAF transportation
fuel)), or activity letter CA (in the case of
a producer of SAF transportation fuel),
or such other activity letter(s) as the IRS
may designate, and the registration has
not been revoked or suspended. A person
with a Letter of Registration from the IRS
under any other activity letter is not regis-
tered under section 4101 for purposes of
the section 45Z credit.
(3) Separate entity treatment—(i) In
general. Each business unit that has, or
is required to have, a separate employer
identification number (EIN) is treated as a
separate person for purposes of registration
under this section. Thus, two business units
(for example, a parent corporation and a
subsidiary corporation), each of which has
a different EIN, are two persons.
(ii) Disregarded entity. Section
301.7701-2(c)(2)(i) of this chapter (relat-
ing to certain wholly owned entities) does
not apply for purposes of registration
under this section. An entity that is disre-
garded as an entity separate from its owner
for any purpose under § 301.7701-2 of
this chapter and that has, or is required to
have, an EIN is treated as a corporation
(consistent with § 301.7701-2(c)(2)(v)(B)
of this chapter) for purposes of registra-
tion under this section. Therefore, if such
an entity produces transportation fuel, it
must be registered as a producer of trans-
portation fuel at the time of production for
its owner to be eligible to claim the sec-
tion 45Z credit for such fuel.
(iii) Qualified subchapter S subsid-
iary. A qualified subchapter S subsidi-
ary as defined in section 1361(b)(3)(B)
of the Code (QSub) is treated as sepa-
rate from the S corporation that owns it
for purposes of registration under this
section. Therefore, a QSub that has an

Bulletin No. 2026–9 631 February 23, 2026
EIN and that produces transportation
fuel must be registered as a producer of
transportation fuel at the time of produc-
tion in order for its S corporation owner
to be eligible to claim the section 45Z
credit for such fuel.
(4) Reregistration—(i) Reregistration
in the event of change of ownership. As
provided in section 4101(a)(5), a person
is required to reregister under this section
if after a transaction (or series of related
transactions) more than 50 percent of
ownership interests in, or assets of, such
person are held by persons other than per-
sons (or persons related thereto) who held
more than 50 percent of such interests or
assets before the transaction (or series of
related transactions). Reregistration does
not apply to a company whose stock is
regularly traded on an established securi-
ties market.
(ii) Reregistration in the event of
change of EIN. If a registrant changes its
EIN, such registrant must reregister under
this section using its new EIN.
(iii) Safe harbor. A person that is
required to reregister as a producer of
transportation fuel due to a change in own-
ership or EIN is eligible to claim a sec-
tion 45Z credit (provided that all require-
ments of section 45Z are met) as of the
date the IRS received the application for
reregistration, even if, at the time of fuel
production, the IRS has not yet approved
the reregistration. Provided the registra-
tion tests for the reregistration are met,
the original registration remains in effect
until the IRS revokes that registration and
issues a new one.
(b) Definitions—(1) Applicant. An
applicant is a person that has applied for
registration as described in paragraph (d)
of this section.
(2) Letter of Registration. A Letter of
Registration is a letter issued by the IRS
to approve a registration required under
section 4101. A Letter of Registration
includes the registrant’s registration num-
ber and the effective date of the registra-
tion.
(3) Penalized for a wrongful act. A per-
son has been penalized for a wrongful act
if the person has—
(i) Been assessed any penalty under
chapter 68 of the Code (or similar provi-
sion of the law of any State) for fraudu-
lently failing to file any return or pay any
tax, and the penalty has not been wholly
abated, refunded, or credited;
(ii) Been assessed any penalty under
chapter 68 of the Code, and such penalty
has not been wholly abated, refunded, or
credited, and the IRS determines that the
conduct resulting in the penalty is part of
a consistent pattern of failing to deposit,
pay, or pay over a substantial amount of
tax;
(iii) Been convicted of a crime under
chapter 75 of the Code (or similar provi-
sion of the law of any State), or of con-
spiracy to commit such a crime, and the
conviction has not been wholly reversed
by a court of competent jurisdiction;
(iv) Been convicted, under the laws of
the United States or any State, of a felony
for which an element of the offense is
theft, fraud, or the making of false state-
ments, and the conviction has not been
wholly reversed by a court of competent
jurisdiction;
(v) Been assessed any tax under section
4103 of the Code and the tax has not been
wholly abated, refunded, or credited; or
(vi) Had its registration under section
4101, section 4222, section 4662, or sec-
tion 4682 of the Code revoked.
(4) Related person. For purposes of
registration under section 4101 and this
section, a related person is a person that—
(i) Directly or indirectly exercises con-
trol over an activity of the applicant;
(ii) Owns, directly or indirectly, five
percent or more of the applicant;
(iii) Is under a duty to assure the pay-
ment of a tax for which the applicant is
responsible;
(iv) Is a member, with the applicant,
of a group of organizations (as defined
in § 1.52-1(b)) that would be treated as a
group of trades or businesses under com-
mon control for purposes of § 1.52-1; or
(v) Distributed or transferred assets
to the applicant in a transaction in which
the applicant’s basis in the assets is deter-
mined by reference to the basis of the
assets in the hands of the distributor or
transferor.
(5) Registrant. A registrant is a per-
son that the IRS has, in accordance with
paragraph (f)(3) of this section, registered
under section 4101 and whose registration
has not been revoked or suspended.
(c) Requirement to register—(1) In
general. Every person producing a trans-
portation fuel is required to register with
the IRS in accordance with this section.
See section 4101(a)(1).
(2) Consequences of failing to regis-
ter. For the criminal penalty imposed for
failure to register, see section 7232 of the
Code. For the civil penalties imposed for
failure to register or reregister, see sec-
tions 6719 and 7272 of the Code.
(d) Application instructions. Applica-
tion for registration under section 4101
must be made on Form 637, Application
for Registration (For Certain Excise Tax
Activities), or such other form as the IRS
may designate, in accordance with the
instructions to such form. See § 601.602
of this chapter. An applicant for regis-
tration as a producer of non-SAF trans-
portation fuel must apply for registration
under activity letter CN, or such other
activity letter as the IRS may designate.
An applicant for registration as a pro-
ducer of SAF transportation fuel must
apply for registration under activity let-
ter CA, or such other activity letter as the
IRS may designate.
(e) Registration tests—(1) In general.
The IRS will register an applicant only
if the IRS determines that the applicant
meets the following three tests (collec-
tively, the registration tests):
(i) The activity test;
(ii) The acceptable risk test; and
(iii) The satisfactory tax history test.
(2) Activity test. An applicant meets
the activity test only if the IRS determines
that the applicant—
(i) Is, in the course of its trade or busi-
ness, regularly engaged in the activity for
which it is requesting registration; or
(ii) Is likely to be (because of such
factors as the applicant’s business experi-
ence, financial standing, or trade connec-
tions), in the course of its trade or busi-
ness, regularly engaged in the activity for
which it is requesting registration within
6 months after becoming registered under
section 4101.
(3) Acceptable risk test—(i) In gen-
eral. An applicant meets the acceptable
risk test if neither the applicant nor a
related person (as defined in paragraph
(b)(4) of this section) has been penalized
for a wrongful act. If an applicant or a
related person has been penalized for a
wrongful act, the IRS may nonetheless
determine that an applicant meets the

February 23, 2026 632 Bulletin No. 2026–9
acceptable risk test based on consider-
ation of the factors enumerated in para-
graph (e)(3)(ii) of this section.
(ii) Factors to consider. In making the
determination described in paragraph (e)
(3)(i) of this section, the IRS may consider
factors such as the following:
(A) The time elapsed since the appli-
cant or related person was penalized for a
wrongful act.
(B) The present relationship between
the applicant and any related person that
was penalized for any wrongful act.
(C) The degree of rehabilitation of the
person penalized for any wrongful act.
(4) Satisfactory tax history test—(i) In
general. An applicant meets the satisfac-
tory tax history test only if the IRS deter-
mines that the applicant has a satisfactory
tax history as described in paragraph (e)
(4)(ii) of this section.
(ii) Satisfactory tax history. An appli-
cant has a satisfactory tax history only
if the Commissioner determines that the
filing, deposit, and payment history for
all Federal taxes of the applicant and any
related person (as defined in paragraph (b)
(4) of this section) supports the conclu-
sion that the applicant will comply with
its obligations under this section.
(f) Action on the application for regis-
tration by the IRS—(1) Review of applica-
tion. The IRS may investigate the accuracy
and completeness of any representations
made by an applicant and request any
additional relevant information from the
applicant.
(2) Denial. If the IRS determines that
an applicant does not meet all the registra-
tion tests described in paragraph (e) of this
section, the IRS will notify the applicant,
in writing, that its application for registra-
tion is denied and state the basis for the
denial.
(3) Approval. If the IRS determines
that an applicant meets all the registration
tests described in paragraph (e) of this
section, the IRS will register the applicant
under section 4101 and issue the applicant
a Letter of Registration that includes the
effective date of the registration and the
appropriate activity letter(s). A copy of an
application for registration (Form 637) is
not a Letter of Registration.
(g) Terms and conditions of registra-
tion—(1) Affirmative duties. Each appli-
cant or registrant must—
(i) Make deposits, file returns, and pay
taxes as required by the Code and the reg-
ulations;
(ii) Keep records sufficient to show
production of a transportation fuel;
(iii) Notify the IRS of any change in
the information the registrant submitted in
connection with its application for regis-
tration or previously submitted under this
paragraph (g)(1)(iii) within 10 days after
the change occurs. Changes requiring IRS
notification include, but are not limited to,
changes in ownership, address, and busi-
ness activities.
(2) Prohibited actions. An applicant or
registrant may not—
(i) Sell, lease, or otherwise allow another
person to use its registration, except as oth-
erwise provided in § 1.45Z-6(b)(2); or
(ii) Make any false statement to the
IRS in connection with a submission
under section 4101.
(h) Effect of Letter of Registration. A
Letter of Registration is not a determina-
tion of liability for tax, eligibility for a tax
credit or deduction, or any other tax treat-
ment under the Code. For example, a Letter
of Registration issued under activity letter
CN to a person producing a fuel is not a
determination that such fuel is a transporta-
tion fuel under section 45Z(d)(5)(A) or that
the facility at which the person produces
such fuel is a qualified facility under sec-
tion 45Z(d)(4). A Letter of Registration is
also not a determination letter, as defined in
§ 601.201(a)(3) of this chapter.
(i) Adverse actions by the IRS against a
registrant—(1) Mandatory revocation or
suspension. The IRS will revoke or sus-
pend the registration of any registrant if
the IRS determines that the registrant, at
any time—
(i) Does not meet one or more of the
registration tests in paragraph (e) of this
section and has not corrected the defi-
ciency within a reasonable period of time
after notification by the IRS;
(ii) Has used its registration to evade,
or attempt to evade, the payment of any
tax, or to postpone or in any manner to
interfere with the collection of any such
tax, or to make a fraudulent claim for a
credit or payment;
(iii) Has aided or abetted another per-
son in evading, or attempting to evade,
payment of any tax, or in making a fraud-
ulent claim for a credit or payment; or
(iv) Has sold, leased, or otherwise
allowed another person to use its regis-
tration, except as otherwise provided in §
1.45Z-6(b)(2).
(2) Remedial action permitted in other
cases. If the IRS determines that a reg-
istrant has, at any time, failed to comply
with the terms and conditions of registra-
tion in paragraph (g) of this section, made
a false statement to the IRS in connection
with its application for registration (or
reregistration) or for retention of registra-
tion, or otherwise used its registration in
a manner that creates a significant risk of
nonpayment or late payment of tax, then
the IRS may revoke or suspend the regis-
trant’s registration.
(3) Action by the IRS to revoke or sus-
pend a registration. If the IRS revokes or
suspends a registration, the IRS will notify
the registrant in writing and state the basis
for the revocation or suspension and the
activity letter(s) to which the revocation
or suspension relates. The effective date
of the revocation or suspension may not
be earlier than the date on which the IRS
notifies the registrant.
(j) Applicability date. This section
applies to persons producing transpor-
tation fuel in taxable years ending on or
after [date of publication of final regula-
tions in the Federal Register].
Par. 6. Section 1.6417-2 is amended by
revising paragraphs (c)(4) and (f) to read
as follows:
§ 1.6417-2 Rules for elective payment
elections.
* * * * *
(c) * * *
(4) Credits must be determined with
respect to the applicable entity or elect-
ing taxpayer. Any credits for which an
elective payment election is made must
have been determined with respect to the
applicable entity or electing taxpayer.
An applicable credit is determined with
respect to an applicable entity or elect-
ing taxpayer if the applicable entity or
electing taxpayer owns the underlying
applicable credit property and conducts
the activities giving rise to the credit or,
if ownership is not required to give rise
to the applicable credit, such as a credit
under section 45Z or section 45(d)(3)(C),
the applicable entity or electing taxpayer

Bulletin No. 2026–9 633 February 23, 2026
must conduct the activities giving rise
to the credit. In the case of section 45X
(under which ownership of applicable
credit property is also not required, but
for which rules related to contract man-
ufacturing arrangements may be appli-
cable), the applicable entity or electing
taxpayer must be considered (under the
section 45X regulations) the taxpayer
with respect to which the section 45X
credit is determined. Thus, no election
may be made under this section for any
credits transferred pursuant to section
6418, allowed pursuant to section 45Q(f)
(3), acquired by a lessee from a lessor
by means of an election to pass through
the credit to a lessee under former sec-
tion 48(d) (pursuant to section 50(d)(5)),
owned by a third party, or otherwise not
determined with respect to the applicable
entity or electing taxpayer.
* * * * *
(f) Applicability dates—(1) In general.
Except as otherwise provided in this para-
graph (f), this section applies to taxable
years ending on or after March 11, 2024.
For taxable years ending before March 11,
2024, taxpayers, however, may choose to
apply the rules of §§ 1.6417-1 through
1.6417-4 and 1.6417-6, provided the tax-
payers apply the rules in their entirety and
in a consistent manner.
(2) Paragraph (c)(4). Paragraph (c)
(4) of this section applies to taxable years
ending on or after [date of publication of
final regulations in the Federal Register].
For taxable years ending before [date of
publication of final regulations in the Fed-
eral Register], see § 1.6417-2(c)(4) as
contained in 26 CFR part 1, revised April
1, 2025.
Par. 7. Section 1.6418-2 is amended by
revising paragraphs (d)(1) and (g) to read
as follows:
§ 1.6418-2 Rules for making transfer
elections.
* * * * *
(d) Determining the eligible credit—
(1) In general. An eligible taxpayer may
only transfer eligible credits determined
with respect to the eligible taxpayer
(paragraph (a)(4) of this section disal-
lows transfer elections in other situa-
tions). An eligible credit is determined
with respect to an eligible taxpayer if
the eligible taxpayer owns the underly-
ing eligible credit property and conducts
the activities giving rise to the credit or,
if ownership is not required to give rise
to the eligible credit, such as a credit
under section 45Z or section 45(d)(3)(C),
the eligible taxpayer must conduct the
activities giving rise to the credit. In the
case of section 45X (under which own-
ership of eligible credit property is also
not required, but for which rules related
to contract manufacturing arrangements
may be applicable), the eligible tax-
payer must be considered (under the sec-
tion 45X regulations) the taxpayer with
respect to which the section 45X credit
is determined. All rules that relate to the
determination of the eligible credit, such
as the rules in sections 49 and 50(b) of
the Code, apply to the eligible taxpayer
and therefore can limit the amount of
eligible credit determined with respect
to an eligible credit property that can be
transferred. Rules relating to the amount
of an eligible credit that is allowed to be
claimed by an eligible taxpayer, such as
the rules in section 38(c) or section 469 of
the Code, do not limit the eligible credit
determined, but do apply to a transferee
taxpayer as described in paragraph (f)(3)
of this section.
* * * * *
(g) Applicability dates—(1) In gen-
eral. Except as otherwise provided in
this paragraph (g), this section applies
to taxable years ending on or after April
30, 2024. For taxable years ending before
April 30, 2024, taxpayers, however, may
choose to apply the rules of this section
and §§ 1.6418-1, 1.6418-3, and 1.6418-5,
provided the taxpayers apply the rules in
their entirety and in a consistent manner.
(2) Paragraph (d)(1). Paragraph (d)
(1) of this section applies to taxable years
ending on or after [date of publication of
final regulations in the Federal Register].
For taxable years ending before [date of
publication of final regulations in the Fed-
eral Register], see § 1.6418-2(d)(1) as
contained in 26 CFR part 1, revised April
1, 2025.
PART 48 — MANUFACTURERS
AND RETAILERS EXCISE TAXES
Par. 8. The authority citation for part
48 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
* * * * *
Section 48.4101-1 also issued under 26
U.S.C. 4101(a)(1).
* * * * *
Par. 9. Section 48.4101-1 is amended
by adding paragraphs (a)(7) and (8), and
(l)(6), to read as follows:
§ 48.4101-1 Taxable fuel; registration.
* * * * *
(a) * * *
(7) A letter of registration is not a deter-
mination of liability for tax, eligibility for
a tax credit or deduction, or any other tax
treatment under the Code. For example,
a registration letter issued under activity
letter SA to a person producing or import-
ing a fuel that may be eligible for a credit
under section 6426(k) of the Code is not a
determination that such fuel qualifies for
the section 6426(k) credit. A letter of reg-
istration is also not a determination letter,
as defined in § 601.201(a)(3) of this chap-
ter. The terms letter of registration and
registration letter as used in this section
have the same meaning as the term Letter
of Registration as defined in § 1.4101-1(b)
(2) of this chapter.
(8) A person is required to reregister
under this section if after a transaction
(or series of related transactions) more
than 50 percent of ownership interests in,
or assets of, such person are held by per-
sons other than persons (or persons related
thereto) who held more than 50 percent of
such interests or assets before the trans-
action (or series of related transactions).
Reregistration does not apply to any com-
pany whose stock is regularly traded on
an established securities market. If a reg-
istrant changes its employer identification
number (EIN), such registrant must rereg-
ister under this section using its new EIN.
* * * * *
(l) * * *
(6) Paragraphs (a)(7) and (8) of this
section apply to taxable years ending on
or after [date of publication of final regu-
lations in the Federal Register].
Frank J. Bisignano,
Chief Executive Officer.
(Filed by the Office of the Federal Register February
3, 2026, 8:45 a.m., and published in the issue of the
Federal Register for February 4, 2026, 91 FR 5160)

Bulletin No. 2026–9 i February 23, 2026
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations
to show that the previous published rul-
ings will not be applied pending some
future action such as the issuance of new
or amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in
material published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.
—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

February 23, 2026 ii Bulletin No. 2026–9
Numerical Finding List
1
Bulletin 2026–9
Announcements:
2026-1, 2026-04 I.R.B. 402
2026-2, 2026-05 I.R.B. 447
2026-3, 2026-06 I.R.B. 518
2026-4, 2026-06 I.R.B. 533
2026-5, 2026-07 I.R.B. 540
Notices:
2026-2, 2026-02 I.R.B. 304
2026-3, 2026-02 I.R.B. 307
2026-5, 2026-02 I.R.B. 309
2026-6, 2026-02 I.R.B. 313
2026-1, 2026-04 I.R.B. 365
2026-8, 2026-04 I.R.B. 368
2026-10, 2026-04 I.R.B. 378
2026-11, 2026-06 I.R.B. 491
2026-12, 2026-06 I.R.B. 496
2026-13, 2026-06 I.R.B. 499
2026-9, 2026-07 I.R.B. 534
Proposed Regulations:
REG-101952-24, 2026-03 I.R.B. 345
REG-110519-25, 2026-03 I.R.B. 353
REG-132251-11; REG-134219-08,
2026-03 I.R.B. 358
REG-103430-24, 2026-05 I.R.B. 447
REG-112829-25, 2026-05 I.R.B. 452
REG-113515-25, 2026-05 I.R.B. 455
REG-121244-23, 2026-09 I.R.B. 579
Revenue Procedures:
2026-1, 2026-01 I.R.B. 1
2026-2, 2026-01 I.R.B. 119
2026-3, 2026-01 I.R.B. 143
2026-4, 2026-01 I.R.B. 160
2026-5, 2026-01 I.R.B. 258
2026-6, 2026-02 I.R.B. 314
2026-7, 2026-02 I.R.B. 316
2026-8, 2026-04 I.R.B. 380
2026-9, 2026-04 I.R.B. 393
2026-10, 2026-04 I.R.B. 394
2026-12, 2026-07 I.R.B. 535
2026-13, 2026-09 I.R.B. 563
Revenue Rulings:
2026-1, 2026-02 I.R.B. 299
2026-2, 2026-03 I.R.B. 342
2026-3, 2026-06 I.R.B. 485
2026-4, 2026-06 I.R.B. 487
2026-5, 2026-08 I.R.B. 542
Treasury Decisions:
10042, 2026-03 I.R.B. 320
10041, 2026-04 I.R.B. 360
10039, 2026-05 I.R.B. 403
10040, 2026-05 I.R.B. 416
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin
2024–52, dated December 22, 2024.

Bulletin No. 2026–9 iii February 23, 2026
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2026–9
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin
2024–52, dated December 22, 2024.

Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300
INTERNAL REVENUE BULLETIN
The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletins are available at www.irs.gov/irb/.
We Welcome Comments About the Internal Revenue Bulletin
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it,
we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page
www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave.
NW, IR-6230 Washington, DC 20224.