I’ll keep working to make sure our producers and biofuel industries can take full advantage of this credit to grow our economy and support hardworking families right here at home.
Keep working to ensure Illinois producers and biofuel industries can fully take advantage of the Clean Fuels Production Credit to grow the economy and support local families.
Occurrences
Evidence
Sorensen’s office said Treasury guidance on 45Z was a win for Illinois farmers and said the guidance followed a bipartisan push by Sorensen and 52 lawmakers for faster guidance and broader eligible farming practices. Sorensen also pledged continued work so producers and biofuel industries could use the credit.
Treasury and IRS released guidance on Section 45Z, describing it as a per-gallon credit for producers of clean transportation fuels and saying the guidance clarified eligibility, fuel qualification, and lifecycle-emissions calculation issues.
IRS says the Clean Fuel Production Credit is available for domestically produced clean transportation fuel sold from January 1, 2025, through December 31, 2029. The page tells taxpayers to register with Form 637 and file Form 7218 to claim the credit.
Treasury and IRS issued proposed 45Z regulations for domestic clean-fuel producers to determine eligibility and calculate the credit. The release says the proposal covers emissions rates, certification, registration, and stakeholder-raised issues, and invites public comments.
An official House release says Sorensen signed a bipartisan letter urging EPA action to support domestic renewable fuel producers. The letter tied the import-RIN proposal to congressional intent under 45Z, emphasizing domestic feedstocks and a level playing field for U.S. biofuel producers.
Ethanol Producer Magazine reported that Sorensen signed an October 20, 2025 letter to Treasury Secretary Scott Bessent urging final 45Z guidance. The report says lawmakers warned that existing guidance had not addressed how the credit could be claimed, validated, and monetized.
Assessments
Sorensen continued oversight work tied to the Clean Fuels Production Credit during his current House term, including joining bipartisan pushes for Treasury guidance and EPA action benefiting domestic biofuel producers. Treasury and IRS guidance, registration, filing processes, and proposed regulations made the credit partly usable for producers. However, the record shows guidance remained incomplete or proposed, and lawmakers were still pressing for final rules on how the credit could be claimed, validated, and monetized, so Illinois producers were not shown to be able to fully take advantage of the credit.