H.R. 1 extends 45Z clean fuel credit through 2029 but slashes sustainable aviation fuel tax credit from $1.75 to $1.00 per gallon
H.R. 1 (the "One Big Beautiful Bill" Act), enacted July 4, 2025, expands the 45Z Clean Fuel Production Credit by extending it through 2029 and loosening carbon intensity eligibility requirements for transportation fuels. However, it simultaneously reduces the maximum per-gallon credit for sustainable aviation fuel (SAF) producers from $1.75 to $1.00 per gallon. These changes reshape incentives for conventional biofuels versus advanced sustainable aviation fuels.
Key quotes
H.R. 1, the so-called 'One Big Beautiful Bill' Act (OBBBA), enacted on July 4, 2025, expands the 45Z Clean Fuel Production Credit (45Z) by extending it through 2029 and loosening eligibility requirements associated with transportation fuels' carbon intensity (CI).
Amendments to the 45Z credit within H.R. 1 dramatically reduce the maximum per-gallon credit value available to sustainable aviation fuel (SAF) producers: from $1.75/gallon to $1.00/gallon.
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