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IRS Notice 2026-53: 2026 Section 45Z Emissions Rates for Manure-Derived Fuels

IRS Notice 2026-53 sets out 2026 Section 45Z emissions-rate guidance, with separate rules for manure feedstocks, production dates and certain farm-specific prior practices.
From TheFinanceBase Team4 min to read
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IRS Notice 2026-53 provides the calendar-year 2026 emissions-rate table for the Section 45Z clean fuel production credit and explains how statutory changes affect the rates. For manure-derived transportation fuel, the feedstock, production date, available 45ZCF-GREET model rate and—where applicable—the farm’s prior manure-management practices determine which treatment to use. The notice became effective September 8, 2026.

What Notice 2026-53 changes for Section 45Z

The notice supplies emissions rates for calendar year 2026 and clarifies how the credit’s statutory changes apply. For non-sustainable aviation fuel, it discusses using the 45ZCF-GREET model to determine emissions rates. The notice identifies public model versions, a user manual, FAQs and change logs as available through the Department of Energy’s GREET materials.

For transportation fuel produced after December 31, 2025, the notice addresses three statutory changes: indirect land-use-change emissions are excluded; feedstocks must be produced or grown in the United States, Mexico or Canada; and negative emissions rates are prohibited except for fuel derived from animal manure. These rules do not establish an individual producer’s rate by themselves: the relevant rate must be determined using the applicable model and the notice’s complete 2026 appendix.

Which manure feedstocks have distinct rates

The notice’s 2026 table lists dairy manure and swine manure as distinct primary feedstocks. Treasury and the IRS anticipate that a later 2026 update to 45ZCF-GREET will add poultry and beef manure as primary feedstocks. The notice encourages producers using poultry or beef manure to wait for that update and postpone potential provisional emissions-rate (PER) petitions. For other manure feedstocks not included in the table, a producer may submit a PER petition under the process described in the notice.

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Check the complete official appendix for the numeric rate for the specific feedstock and fuel pathway. The individual row values are not reproduced here, so no rate should be inferred from the general rules.

How the production date affects manure-derived fuel

Fuel production date Manure-related model treatment described in the notice Additional 2026 rate rule
On or before December 31, 2025 Use a 45ZCF-GREET version that reflects an alternative fate based on the national average of animal-waste-management practices. The distinct emissions rates based on specific animal-manure feedstocks do not apply under this transition instruction.
After December 31, 2025 Distinct emissions rates based on specific animal-manure feedstocks apply. Use a 45ZCF-GREET version that provides those rates. For transportation fuel, the statutory changes described in the notice also apply, including the exception allowing negative rates for animal-manure-derived fuel.

The dividing line is the fuel’s production date, not simply the date a project began or a model was updated. A producer handling fuel from different production periods should apply the relevant treatment to each period rather than assume one model instruction covers all output.

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When farm-specific prior manure practices can be used

In certain circumstances, a taxpayer may use an alternative fate that reflects farm-specific prior manure-management practices when determining a distinct manure emissions rate. For this purpose, the notice defines a farm as an animal feeding operation, whether or not it has a nutrient management plan, or another animal operation that has such a plan.

Examples of prior practices identified in the notice include uncovered lagoons, deep pits, liquid or slurry management, pasture, range or paddock, dry lot, and solid storage. The relevant practices are those in place immediately before the earlier of the anaerobic digester’s commencement date or September 8, 2026.

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Information to enter in 45ZCF-GREET

  1. Identify the number of animals by type at the farm.
  2. Determine the share of manure managed under each qualifying prior practice at the relevant date.
  3. Enter the animal counts and practice shares in 45ZCF-GREET to determine the distinct rate.

For manure diverted to an off-farm digester, the commencement date is when the farm first began diverting manure to any off-site anaerobic digester. That definition matters when identifying the practices in place immediately before the applicable date.

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How to handle negative rates in 2026

A 45ZCF-GREET version released before June 2026 may produce negative results for non-manure fuels. For fuel produced in 2026, the notice says taxpayers using that version must adjust a negative rate up to zero. The statutory exception permitting negative emissions rates remains available for animal-manure-derived fuel; it does not extend to other fuel merely because an earlier model version produced a negative result.

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Practical decision points for producers and tax advisers

  • Confirm the fuel production date. The notice assigns different manure-related model treatment to fuel produced on or before December 31, 2025, and fuel produced after that date.
  • Match the feedstock to the table. Dairy and swine manure appear as primary feedstocks in the 2026 table. For poultry or beef manure, the notice anticipates a later 2026 model update and recommends waiting rather than filing a potential PER petition immediately.
  • Use the correct model version. Distinct manure rates require a version that includes them; the notice also addresses how to treat negative results from a pre-June 2026 version.
  • Document prior practices when relying on a farm-specific alternative fate. The animal counts, manure shares by practice and the practices in place before the applicable date determine the model inputs.
  • Verify the numeric rate in the full appendix. A general description of the feedstock or transition rule is not a substitute for the specific row and pathway applicable to the fuel.

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