This bill modifies the federal clean fuel production tax credit to prioritize American-grown feedstocks and extends the program's timeline. Specifically, it requires that fuels receiving the tax credit must be derived from feedstocks produced or grown in the United States, effectively excluding foreign-sourced materials from the incentive starting in 2025. The legislation also adjusts how greenhouse gas emissions are calculated by excluding indirect land-use changes from emissions rates, with new methodologies to be developed by the Treasury Department in consultation with the Environmental Protection Agency and Department of Agriculture. Additionally, the bill extends the clean fuel production credit deadline from 2027 to 2034, providing longer-term stability for domestic fuel producers, and increases the precision of emissions factor calculations to help refiners more accurately claim tax credits. The changes primarily benefit American farmers and domestic fuel producers by protecting their competitive advantage in the clean fuel market while supporting the nation's renewable fuel industry.
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