Notice 2026-53 provides guidance around three key topics related to the Section 45Z clean fuel production credit:
- Emissions rates for transportation fuel derived from animal manure are established
- Consideration of certain regenerative agricultural feedstock practices
- Emissions rate table for calendar year 2026 for purposes of §45Z
Generally, the available credit depends on the produced fuel’s lifecycle greenhouse gas emission rate. The Proposed Regulations for §45Z outlined the role of the annual emissions rate tables and how they should be used by taxpayers claiming the credit. The Notice expands on the proposed regulations by providing guidance on manure-derived fuel pathways and by addressing various technical modeling updates under §45Z. The IRS states that “today’s notice provides the 2026 emissions rate table used to calculate the credit and allows certain regenerative agricultural practices and farm-specific manure management practices to be reflected in emissions calculations, helping agricultural producers participate in the growing domestic biofuels market.”
While the 2026 emissions rate currently includes dairy and swine manure, poultry and beef manure feedstocks will likely be added to the 45ZCF-GREET model in further guidance. Further, certain “farm-specific prior manure management practices” may be taken into account.
A safe harbor was introduced by the Notice for those with clean fuel production in 2025 for those using the 45ZCF-GREET model in certain situations. Additionally, transition rules are now provided for those feedstocks for which an allowed methodology is not yet updated.
How We Can Help
The Forvis Mazars Inflation Reduction Act Consulting team is prepared to discuss these changes and how they may impact you. Whether producing clean fuel in 2025 and utilizing the new safe harbor, or producing in 2026, our team can help you through the process.