The Trump administration’s sluggish implementation of a clean fuels tax credit is costing Americans at the gas pump, a trade association for fuel retailers said.
In testimony this week to the Treasury Department, industry groups for truck stops and fuel marketers said consumers would see lower gas prices if the tax credit for lower-emission fuels were fully in place. That was one theme emerging from a multiday hearing the department is hosting on the tax credit, which took effect in early 2025 but hasn’t seen much adoption.
Instead, the administration continues to grapple with the fine details of the tax break, in Section 45Z of the Internal Revenue Code, including how to calculate the carbon savings attached to certain biofuels. The credit goes to fuel producers but benefits farmers through increased use of corn, soybeans and other feedstocks.
While the 45Z credit is buried in the fine print of the tax code, it’s a big issue for agriculture and for biofuel producers looking to grab a bigger share of the fuel market. Congress passed the credit during the Biden administration, and it’s one of the few climate-related tax provisions Republicans have been willing to support and extend.
