The US Department of the Treasury and the Internal Revenue Service released Notice 2026-53 (Notice), providing certain guidance related to the Section 45Z clean fuel production credit. The Notice sets forth the emissions rate table for the 2026 calendar year, establishes emissions rates for transportation fuel derived from specific animal manure feedstocks (dairy manure and swine manure), and describes how certain regenerative agricultural feedstock practices may be taken into account for purposes of the credit.
Concurrently with the release of the Notice, the Department of Energy released an updated version of the 45ZCF-GREET model, adding pathways for renewable natural gas from food scraps, corn stover, grain stillage, mixed high-moisture organic wastes, dairy manure, and swine manure via anaerobic digestion and upgrading. The Notice states that Treasury and the IRS anticipate the 45ZCF-GREET model to be further updated in 2026 to include poultry manure and beef manure as primary feedstocks.
*Bracewell associate Gurtaj Boparai provided invaluable assistance with this client alert.