Ricketts Applauds Updated 45Z Guidance

WASHINGTON, D.C. — Today, U.S. Senator Pete Ricketts (R-NE) issued the following statement after the U.S. Department of the Treasury issued updated guidance on the Section 45Z Clean Fuel Production Credit. The proposed guidance incorporates critical provisions included in the Working Families Tax Cuts Act to ensure the credit effectively supports American-grown feedstocks and domestic energy production.

“Nebraska is the global leader in value-added agriculture. Our farmers and biofuel producers are at the heart of America’s energy independence,” said Senator Ricketts. “The 45Z guidance is a win for Nebraska producers and American energy security. Our state is a leader in the biofuel industry, and I will continue to work to keep it strong.”

BACKGROUND

The Section 45Z Clean Fuel Production Credit, which went into effect on January 1, 2025, is a technology-neutral credit designed to incentivize the domestic production of low-carbon transportation fuels, including ethanol and biodiesel.

Senator Ricketts has been a vocal advocate for ensuring the credit remains accessible to farmers and biofuel producers and that it prioritizes American feedstocks over foreign imports.

He continues to lead efforts in the Senate to expand markets for biofuels through legislation like the Renewable Fuel for Ocean-Going Vessels Act and the recently introduced Renewable Chemicals Act.