US Proposes Rules for Domestic Clean Fuel Credit Under the OBBB Plan
The Treasury and IRS issued proposed regulations for the clean fuel production credit under the One, Big, Beautiful Bill, clarifying eligibility, emissions rates, and registration. Key changes extend the credit to 2029, limit feedstocks to US/Mexico/Canada, tighten related-intermediary sale attribution, remove the sustainable aviation fuel rate, and add anti-abuse and manure-based emission rules, with indirect land-use changes excluded. Eligible producers must register with the IRS (Form 637) before production; public comments and a hearing are planned.