SECTION 1. PURPOSE

This notice provides guidance on the establishment of emissions rates under § 45Z(b)(1)(B) of the Internal Revenue Code (Code) ¹ for the clean fuel production credit determined under § 45Z (§ 45Z credit) and clarifies the application of certain amendments to § 45Z made by § 70521 of Public Law 119-21, 139 Stat. 72, 276 (July 4, 2025), commonly known as the One, Big, Beautiful Bill Act (OBBBA). Specifically, this notice addresses the establishment of emissions rates for transportation fuel derived from animal manure. This notice also describes how certain regenerative agricultural feedstock practices may be taken into account for purposes of § 45Z. The Appendix to this notice provides the annual emissions rate table for calendar year 2026 for purposes of § 45Z.

The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) developed this notice in consultation with the Department of Energy (DOE), the United States Department of Agriculture (USDA), the Federal Aviation Administration (FAA), and other federal agencies.