Montana Renewables receives approval of 45Z registration from IRS

Montana Renewables announced Dec. 12 that it has received approval of its excise-tax registration from the Internal Revenue Service.

Registration is the first step toward allowing the business to claim clean fuel production tax credit, known as 45Z, which was passed under the Inflation Reduction Act.

Montana Renewables, which operates a U.S. qualified production facility in Great Falls, is registered as both a producer of clean transportation fuel and sustainable aviation fuel (SAF).

Section 45Z provides a transferable federal income-tax credit for clean fuels produced after Dec. 31, 2024, and before Jan. 1, 2028.

The incentive replaces the previous blenders tax credit.

“This procedural change from the old blenders tax credit to the new producers tax credit extends a long history of bipartisan support for domestic agriculture and creates incentives for Montana cash crops, including camelina,” said Bruce Fleming, the CEO of Montana Renewables.

“While Montana Renewables is feedstock agnostic, on behalf of growers we express the hope that the upcoming producers tax credit’s detailed regulations will prove superior to the blenders tax credit it replaces.”

Montana Renewables is an unrestricted subsidiary of Calumet Inc.