The Farmer First Fuel Incentives Act modifies the federal clean fuel production tax credit to prioritize American-grown feedstocks and strengthen environmental accounting. The bill prohibits the use of foreign feedstocks in qualifying fuels for the tax credit starting in 2025, directly benefiting U.S. farmers and domestic fuel producers by limiting competition from imported materials. The legislation also refines how emissions are calculated by excluding indirect land use changes from greenhouse gas measurements, giving Treasury, the EPA, and the Department of Agriculture authority to determine the methodology. Additionally, the bill extends the clean fuel production credit from its current 2027 expiration date to December 31, 2034, providing long-term certainty for the industry. The bill also changes how emissions factors are rounded in credit calculations, moving from 0.1 to 0.01 for more precision in determining fuel eligibility and credit amounts starting in 2025.
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