LINCOLN, Neb. (DTN) -- Biofuels and agriculture interest groups asked for an emergency extension of the biodiesel and renewable diesel 40A blenders tax credit set to expire at year's end, as the Biden administration has yet to release tax guidance on the 45Z Clean Fuels Production Credit was expected to replace the blenders credit.
Clean Fuels Alliance America and 10 national and state associations that wrote a letter to leadership in the House and Senate on Thursday, said the tax credit renewal was needed to "provide certainty and stability" to stakeholders in the biodiesel and renewable diesel industries.
The U.S. Department of Treasury requested comment on the 45Z credit and issued guidance on registration requirements and the prevailing wage and apprenticeship requirements.
However, the treasury has yet to provide guidance "sufficient" to enable taxpayers and industry stakeholders to calculate the tax credit value for the fuels they produce, according to the letter.
The Clean Fuels Alliance America said in a news release that many producers have not received the registration letters necessary to claim the credit.
"Due to the significant uncertainty created by this lack of guidance, American clean fuel producers and their partners in agriculture and fuel marketing are facing tremendous confusion in the marketplace," the groups said in the letter.