Darling Ingredients Inc. announced on December 10, 2024, that its 50/50 joint venture, Diamond Green Diesel (DGD), received approval of its Excise Tax Registration from the Internal Revenue Service. This registration is a necessary requirement for a taxpayer to be eligible to claim the Internal Revenue Code 45Z credit.
Randall C. Stuewe, Chairman and Chief Executive Officer, stated that obtaining this excise tax registration is the first step in DGD's ability to monetize the 45Z Producer's Tax Credit. The company is encouraged by this development and anticipates further guidance concerning 45Z in the near future.
The 45Z Clean Fuels Production Credit is expected to significantly impact DGD's profitability and cash flow, making this regulatory approval a critical milestone. It provides a clearer path for DGD to benefit from government incentives for renewable fuel production.
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