Should the clean fuel production tax credit apply only to U.S.-produced materials?

Awaiting Vote
Bill Summary

This bill amends the Internal Revenue Code to ensure that only U.S.-grown or U.S.-produced feedstocks qualify for the clean fuel production credit, prohibiting using foreign feedstocks for this purpose. Feedstocks are raw materials used to create goods, energy, or other materials, and the Clean Fuel Production Credit provides a tax credit for the production of clean transportation fuels. This change will apply to transportation fuel sold after December 31, 2024. Additionally, the Act extends the expiration date of the clean fuel production credit from December 31, 2027, to December 31, 2034, encouraging long-term investment in domestic clean fuel production. Sponsor: Rep. Tracey Mann (Republican, Kansas, District 1)
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Opponents say

•      At the time of research and publication, no official opposing statements have been identified. This does not mean that nobody opposes the bill, nor does it mean that opposing statements will not be made in the future.

Proponents say

•      "It’s very tough in farm country with high interest rates and low commodity prices, which is exactly why we can’t have a tax policy that will lower commodity prices even more. While we support free trade and open markets, we do not believe foreign feedstocks should be incentivized through the hard-earned dollars of U.S. taxpayers to the detriment of American farmers. This legislation puts farmers FIRST to ensure they are the primary beneficiaries of renewable fuel tax incentives and provides businesses a decade of certainty." Source: Sen. Roger Marshall (Republican, Kansas)


•      "American tax dollars should support American farmers – not imported feedstocks. To continue to grow the biofuels industry and open new markets for Ohio farmers, we must stop taxpayer money from subsidizing a surge in Chinese cooking oil or any other foreign feedstock from infiltrating the American market. Our bipartisan bill ensures these investments benefit Ohio farmers and Ohio energy producers." Source: Sen. Sherrod Brown (Democrat, Ohio) 


•      "U.S. soybean farmers have been at the forefront of our domestic clean-energy production through the booming biodiesel and renewable diesel industry over the last decade. The Farmer First Fuel Incentives Act ensures our Kansas soybean growers maintain access to this vital market sector going forward and strengthens the clean fuel production credit for the future." Source: Kaleb Little, Kansas Soybean Association CEO