Today, Growth Energy praised the introduction of the Farmer First Fuel Incentives Act, a bipartisan bill aimed at extending the 45Z clean fuels tax credit, which is currently set to expire at the end of 2027. The bill, introduced by Senators Roger Marshall (R-Kan.) and Sherrod Brown (D-Ohio), alongside Representatives Tracey Mann (R-Kan.) and Marcy Kaptur (D-Ohio) in the House, seeks to extend the tax credit for an additional seven years. The legislation would also prioritize the use of domestic feedstocks, such as bioethanol, for low-carbon fuel production.
Additional co-sponsors of the bill include Senators Pete Ricketts (R-Neb.), Amy Klobuchar (D-Minn.), Deb Fischer (R-Neb.), Tammy Baldwin (D-Wisc.), and Tina Smith (D-Minn.).
"This important bill sends a strong signal that extending the 45Z credit is going to be a top, bipartisan priority in this Congress and the next," said Emily Skor, CEO of Growth Energy. "We applaud Senators Brown, Marshall, and all our rural champions for working to give biofuel producers and our farm partners the long-term certainty we need to accelerate innovation in America’s bioeconomy."
The 45Z tax credit, originally passed as part of the Inflation Reduction Act (IRA), incentivizes the production of low-carbon fuels for transportation on the ground and in aviation. According to Growth Energy’s research, if the credit is extended and properly implemented, it could contribute $21.2 billion to the U.S. economy, generate $13.4 billion in household income, support over 192,000 jobs, and provide farmers with a 10 percent premium price on low-carbon corn used for ethanol production.
With bipartisan support, the Farmer First Fuel Incentives Act aims to ensure long-term investments in clean energy and rural development across the U.S.
