Joco Today

U.S. Senators Roger Marshall and Amy Klobuchar have announced the reintroduction of the bipartisan Farmer First Fuel Incentives Act, seeking to restrict the 45Z Tax Credit to renewable fuels derived from domestically sourced feedstocks. Alongside U.S. Representatives Tracey Mann and Marcy Kaptur, an identical bill has been introduced in the House of Representatives.

The goal of this legislation is to extend the 45Z tax credit, providing the ethanol industry with time and incentives to enhance infrastructure, aiming to reduce dependency on foreign fuel suppliers, open new markets for farmers, and increase ethanol production within Midwest states. The bill also addresses current concerns that the continuation of 45Z without amendments could increase reliance on foreign commodities such as Chinese-used cooking oil, sidelining American agricultural products like soy, corn, and canola oils.

"The Farmer First Fuel Incentives Act is commonsense legislation that stops sending American taxpayer dollars to China, expands robust domestic markets for agriculture producers, and increases certainty for the biofuels industry," Senator Marshall remarked. Similarly, Klobuchar noted, "Domestically produced biofuel strengthens our energy independence, supports our farmers, and boosts rural economies."

Representative Mann weighed in: "American tax incentives should benefit American-grown products and American farmers, not foreign producers." Kaptur emphasized the importance of structuring the tax credit to better benefit domestic producers over international competitors.

The legislation has received the backing of Senators including Joni Ernst, Deb Fischer, Elissa Slotkin, Tammy Baldwin, and Pete Ricketts. Several representatives from agriculture and biofuel industries such as Growth Energy and the American Soybean Association also support the legislation.

"Throughout my time in Congress, I’ve led the charge to build certainty and clarity into biofuel policies and put Iowa farmers at the forefront of delivering better, more affordable options at the gas pump," said Senator Ernst. Additionally, Senator Fischer emphasized the need for U.S. tax dollars to support home-grown feedstocks. Senator Ricketts highlighted the long-term certainty this bill promises to Nebraskan producers.

Multiple agricultural organizations and businesses have expressed their support. Growth Energy CEO Emily Skor highlighted the significance of the tax credit in fostering new energy projects within rural America. The American Soybean Association and other organizations, including the National Oilseed Processors Association and the National Sorghum Producers, endorsed the bill as it proposes adjustments to existing calculations seen as unfavorable to domestic producers.

The U.S. Canola Association has also shown commendation, particularly applauding the removal of indirect land use change assumptions from the federal tax credit calculations. "We urge Congress to enact these important changes to provide certainty, stability, and market opportunity for canola growers and our biofuels industry partners," U.S. Canola Association President Tim Mickelson stated.

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