Little Apple Times

U.S. Representatives Tracey Mann, Marcy Kaptur, and Nikki Budzinski have reintroduced the Farmer First Fuel Incentives Act, a bipartisan, bicameral bill aimed at prioritizing domestic feedstocks in the production of renewable fuels. This legislation seeks to restrict the 45Z Tax Credit to fuels made from U.S.-sourced feedstocks while extending the credit through 2034. Companion legislation has been introduced in the Senate by Senators Roger Marshall and Amy Klobuchar.

Rep. Mann emphasized the importance of focusing American tax incentives on domestic products. "American tax incentives should benefit American-grown products and American farmers, not foreign producers," he stated. Mann also highlighted the potential displacement of domestic harvests by foreign feedstocks and the need for tax code adjustments to support American producers.

Rep. Kaptur joined the effort, underlining the bipartisan impact of the bill. "Helping American farmers, producers, and growers goes beyond state and party lines, and is more important now than ever," she said. Kaptur stressed the necessity of structuring the tax credit to benefit domestic producers rather than foreign competitors from China or Brazil.

The act aims to provide the ethanol industry the necessary time and incentives to expand infrastructure, thereby decreasing reliance on foreign fuels. It also seeks to rectify current issues in the 45Z credit that could result in American farmers subsidizing foreign-used cooking oils at the expense of U.S.-produced soy, canola, sorghum, and corn oils.

Sen. Marshall called the proposal a commonsense measure to reinforce domestic agricultural markets. "With President Trump in the White House and Republicans leading both the Senate and House, we are finally putting American farmers first," he said, underscoring the need for America-centric energy and agricultural policies.

Sen. Klobuchar pointed out the benefits of domestic biofuel production. "Domestically produced biofuel strengthens our energy independence, supports our farmers, and boosts rural economies," she noted, supporting the legislation’s role in maximizing the potential of the 45Z Clean Fuel Production Credit.

The legislation has garnered support from various agricultural and energy associations, including Growth Energy and the American Soybean Association. National Corn Growers Association President Kenneth Hartman Jr. expressed appreciation for the bill, which "levels the playing field for America’s corn growers."

Amy France from the National Sorghum Producers emphasized the critical role of domestic biofuel production. "Domestic biofuel production remains critical to our farm and our country's success," she said.

Previously, in September 2024, Rep. Mann introduced the Farmers First Fuel Incentives Act in the 118th Congress and urged the Treasury Department to expedite the issuance of the tax credit.

For more information on Rep. Mann's initiatives, visit www.mann.house.gov.

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