The US Department of Treasury on Tuesday released a long-awaited proposal spelling out how to qualify for the “45Z” tax credit, which offers subsidies to alternative fuel producers based on greenhouse gas emissions. The proposed regulations Tuesday clarify, for instance, that producers can claim 45Z tax breaks for fuel that is sold to intermediaries.
“I think there is going to be a significantly greater sense of certainty going forward – obviously not absolute certainty – but I think people will be willing to start negotiating these contracts assuming the proposed regulations get finalized in substantially the same form,” Bracewell’s Liz McGinley told Argus.
More certainty from the proposed rules could lead to “more successful and economically reasonable” tax credit transfer sales too, McGinley said.
