Enacted by the Inflation Reduction Act and recently amended by the One Big Beautiful Bill Act (“OBBBA”), Section 45Z of the Internal Revenue Code offers a tax credit for the domestic production and sale of certain low-emission transportation fuels (“45Z Credit”). The 45Z Credit is worth $0.20 (or $1.00 for producers meeting prevailing wage and apprenticeship requirements) per gallon of renewable diesel, sustainable aviation fuel (“SAF”), renewable natural gas (“RNG”), and certain other low-carbon fuels produced domestically and sold.
