- IRS Notice 2026-53 gives manure-based fuel projects a clearer path to the Section 45Z credit.
- The guidance sets the 2026 emissions table and includes dairy and swine manure pathways.
- Treasury expects the 45ZCF-GREET model to add poultry and beef manure later in 2026.
The IRS issued Notice 2026-53 on September 8, 2026, giving biogas and manure-derived fuel projects a clearer route to the Section 45Z Clean Fuel Production Credit. The guidance establishes the 2026 emissions-rate table and includes dairy manure and swine manure pathways.
The notice applies on and after September 8, 2026. It also allows taxpayers to account for the way individual farms managed manure before a digester’s relevant start date.
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That provision gives producers a way to use farm-level information when calculating emissions rates. The calculation can reflect both the animals involved and the manure-management practices used before fuel production began.
The policy covers projects that turn animal manure into fuel through anaerobic digestion. It also sets a separate starting point when a farm sends manure to another facility.
Farm records can now shape the emissions calculation
Taxpayers producing fuel from animal manure can determine a distinct emissions rate by entering the number of animals by type. They must also report the share of manure managed under each prior practice.
The applicable history ends immediately before the earlier of the digester’s commencement date or September 8, 2026. That rule establishes the point at which the farm’s prior manure practices enter the calculation.
A farm that diverted manure to an off-farm anaerobic digester uses a different test for the commencement date. The relevant date is when the farm first began diverting manure to any off-site anaerobic digester.
The notice also addresses regenerative agricultural practices. Producers can reflect those practices in emissions calculations under the guidance.
The agency linked the credit to farm and fuel producers
The IRS said the guidance is intended to help “America’s crop and livestock farmers, ranchers, and fuel producers” gain access to the domestic biofuels market.
“America’s crop and livestock farmers, ranchers, and fuel producers”
The statement places manure-based fuel production within the agency’s broader focus on agricultural and domestic biofuel activity. The technical provisions connect farm records with emissions calculations.
The guidance gives dairy and swine manure a defined place in the 2026 emissions-rate table. It does not extend that same listed treatment to every manure-based feedstock.
The model still awaits two feedstock additions
Treasury and the IRS said the 45ZCF-GREET model is expected to change later in 2026. The planned update would add poultry manure and beef manure as primary feedstocks.
The future revision is also expected to include pathway refinements. Until then, the notice supplies the 2026 emissions rates for the pathways it recognizes.
The guidance is not the final 45Z regulations. Further rulemaking and model changes remain ahead for developers evaluating feedstocks and emissions pathways.
The distinction leaves different projects with different planning horizons. A recognized manure pathway can use the current framework, while projects depending on later feedstock additions must account for the expected update.
The notice’s effective date is September 8, 2026. Its future-facing elements include the model’s expected additions for poultry manure and beef manure later in 2026.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA about your specific situation.
