Platts modifies IRA tax credit for biodiesel, renewable diesel, SAF assessments

Platts, part of S&P Global Commodity Insights, has modified the federal tax credit for its biodiesel, renewable diesel, sustainable aviation fuel price and cost of production assessments, considering the Internal Revenue Service inflation adjustment factors, effective Aug. 25, 2025.

The IRS published the inflation adjustment factors and applicable amounts for calendar year 2025, on July 21, 2025. Applicable to 45Z, for transportation fuels, the inflation adjustment factor is 1.0611, rounded to the nearest cent. This means, according to the IRS, that the maximum credit will be $1.06/gal for non-SAF fuels and $1.86/gal for SAF, instead of $1/gal and $1.75/gal, respectively.

Platts calculates the credit value by multiplying the lifecycle greenhouse gas emissions reduction percentage by the maximum potential credit value. Platts, therefore, will update the tax credit calculations in biodiesel, renewable diesel and SAF assessments.

The assessments affected are listed in the table below:

Platts will continue to monitor closely the changes for the Clean Fuel Production Credit, or 45Z, under the IRA and adjust the credit value accordingly.

Please submit any feedback, comments or questions about this decision to mrts_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com .

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.