Farmers First Fuel Incentives Act reintroduced in House, Senate
Rep. Marcy Kaptur, D-Iowa,
April 11, 2025
BY Erin Voegele
Sens. Roger Marshall, R-Kan., and Amy Klobuchar, D-Minn., and Reps. Marcy Kaptur, D-Ohio, and Tracey Mann, R-Kan., on April 10 reintroduced legislation that aims to extend the 45Z clean fuel production credit and limit eligibility for the credit to renewable fuels made from domestically sourced feedstocks.
The bill, titled the Farmer First Fuel Incentives Act, was previously introduced in both the House and Senate last year. Sens. Joni Ernst, R-Iowa; Deb Fischer, R-Neb.; Elissa Slotkin, D-Mich.; Tammy Baldwin, D-Wisc., and Pete Ricketts, R-Neb., have signed on to cosponsor the current version of the bill.
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The 45Z tax credit, established by the Inflation Reduction Act of 2022, provides a tax credit for the production and sale of low-emission transformation fuels. The credit starts at 20 cents per gallon for non-aviation fuels and 35 cents per gallon for sustainable aviation fuel (SAF). For facilities that satisfy the prevailing wage and apprenticeship requirements, the value of the tax credit is up to $1 per gallon for non-aviation fuels and $1.75 per gallon for SAF. The tax credit is currently in place for 2025, 2026 and 2027.
The Farmer First Fuel Incentives Act aims to extend the credit for an additional seven years, through the end of 2034. The bill also aims to add language to 45Z regulations limiting credit eligibility to fuel “derived from a feedstock which was produced or grown in the United States.”
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The legislation is supported by Growth Energy, American Soybean Association, National Oilseed Processors Association, National Corn Growers Association, National Sorghum Producers, U.S. Canola Association, and Renewable Fuels Association.
“Farmers and businesses need to know this tax credit is here to stay before they can feel confident investing in dozens of new energy projects across rural America. With this bill they’ll have the certainty they need to accelerate innovation, create thousands of new jobs, and secure new markets for farmers and biofuel producers,” said Emily Skor, CEO of Growth Energy. “We applaud Sen. Marshall and Sen. Klobuchar for their leadership and thank all our rural champions for working to put American renewable fuel producers and farmers in the best possible position to succeed in next generation fuel markets.”
* A previous version of his article incorrectly identified Kaptur as a representative of Iowa.
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