PTC – Clean Fuel Production

Credit Type

Production
Tax Credit

Technology

Fuels

Eligibility

Domestic production of clean transportation fuels incl. SAF. Must emit ≤50 kg CO₂e/mmBTU.

Base Rate

2025:
Non-aviation: $0.20/gal
Aviation: $0.35/gal
(× emissions factor)

2026–2029:
$0.20/gal (all fuels)
(× emissions factor)

Full Rate

2025:
Non-aviation: $1.00/gal
Aviation: $1.75/gal
(× emissions factor)

2026–2029:
$1.00/gal (all fuels)
(× emissions factor)

Bonus Adders

N/A

Duration

5 years
(2025–2029)

Period of Availability

Fuels produced after 12/31/2024 and used/sold before 12/31/2029 (OBBBA extended from 2027).

Transferable (§6418)

Yes

Key Limitations & Notes

  • Cannot stack with §45V or §45Q
  • From 1/1/2026: feedstock must be produced/grown in US, Mexico, or Canada
  • Subject to FEOC/PFE restrictions
  • Inflation-adjusted