WASHINGTON, D.C. - Today, Congresswoman Nikki Budzinski (IL-13) issued a statement on the Department of Treasury's proposed regulations on the 45Z Clean Fuels Production Credit. These rules reflect several of the key requests Budzinski has consistently made to the administration, which are critical for growers and producers in her district.

"Today's long-awaited 45Z proposal delivers certainty that agricultural and biofuels producers in my district have been waiting for. By taking steps to lock in rules through 2029, this guidance will provide a long-term commitment that allows our ethanol and biodiesel producers to plan, invest, and fully benefit from the 45Z tax credit," said Budzinski. "While there is still work to be done to ensure growers producing low-emission feedstocks are rewarded, this renewed clarity is a strong foundation. Together, these policies will grow the biofuels sector, create economic opportunity, and deliver real support for rural America."

The guidelines announced today build on prior guidance released by the Departments of Treasury, Energy, and Agriculture by incorporating public and stakeholder comments. The proposal includes an extension of the credit through 2029, restrictions on foreign feedstocks, and greater flexibility for growers and producers to claim the credit through qualified sales.

Budzinski has been a leading advocate for the issuance of guidance on the 45Z Clean Fuels Production Credit. In October 2024, she welcomed former White House Senior Advisor for International Climate Policy, John Podesta, to Springfield to hear directly from a coalition of Illinois biofuel producers, industry leaders, and farm groups about the importance of creating a well-rounded 45Z policy that benefits both farmers and the biofuels industry, while reducing harmful carbon emissions across the supply chain.

In April 2025, Budzinski co-led the introduction of the Farm First Fuel Incentives Act, which would restrict the eligibility of the 45Z tax credit to domestically sourced feedstocks and extend the credit through 2034.

The 45Z Clean Fuels Production Credit was established in the Inflation Reduction Act of 2022.

###