Kaptur and Mann Lead Bipartisan, Bicameral Legislation Fighting for Farmers with Biofuel Tax Credit

Washington, DC – RealEstateRama – Congresswoman Marcy Kaptur (OH-09), and Tracey Mann (KS-01) reintroduced the bipartisan and bicameral Farmer First Fuel Incentives Act, which would protect American farmers by restricting the eligibility of the 45Z Tax Credit to renewable fuels made only from domestically sourced feedstocks. Senators Amy Klobuchar (D-MN) and Roger Marshall, MD (R-KS) have introduced an identical companion bill in the United States Senate.

“I joined my colleagues in this important bicameral and bipartisan effort because helping American farmers, producers, and growers goes beyond state and party lines, and is more important now than ever,” said Congresswoman Marcy Kaptur (OH-09).“We must ensure the Clean Fuel Production tax credit is structured in a way that benefits domestic producers, and not one that advantages foreign-produced feedstocks from China or Brazil. Our legislation extends this credit through 2034 and will bolster American energy independence by prioritizing American producers and the production of domestic biofuels.”

“American tax incentives should benefit American-grown products and American farmers, not foreign producers,” said Congressman Tracey Mann (KS-01). “Foreign feedstocks can play a significant role in producing domestically manufactured ethanol, biodiesel, renewable diesel, and sustainable aviation fuel, but we cannot allow them to displace harvest grown right in our backyard. Our tax code should reward their grit and tenacity, not prop up feedstocks grown overseas.”

This legislation would extend the 45Z tax credit and give the ethanol industry the time and financial incentive to build up the infrastructure needed for the US to be less reliant on foreign fuel, open new markets for farmers, and increase ethanol production across the Midwest. Additionally, this bill fixes the glaring flaw in 45Z that negatively impacts farmers wanting to sell feedstocks to the biodiesel and renewable diesel industry. If 45Z continues as-is, taxpayers are at risk of further subsidizing Chinese-used cooking oil and undermining the use of soy, canola, sorghum, and corn oil in renewable fuels.

“Domestically produced biofuel strengthens our energy independence, supports our farmers, and boosts rural economies,” said Senator Amy Klobuchar (D-MN). “The introduction of the Farmers First Fuel Incentives Act is an important step as we work to maximize the potential of the 45Z Clean Fuel Production Credit and clean fuel investments across rural America. By extending the credit for another ten years, this legislation gives farmers and biofuel producers the certainty they need to provide consumers with affordable, lower-carbon fuel options.”

“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,” said Senator Roger Marshall (R-KS). “With President Trump in the White House and Republicans leading both the Senate and House, we are finally putting American farmers first and supporting biofuels made in the USA It’s time our energy and agricultural policies reflect that.”

The Senate companion legislation is cosponsored by US Senators Joni Ernst (R-IA), Deb Fischer (R-NE), Elissa Slotkin (D-MI), Tammy Baldwin (D-WI), and Pete Ricketts (R-NE).

The legislation is supported by Growth Energy, American Soybean Association, National Oilseed Processors Association (NOPA), National Corn Growers Association, National Sorghum Producers, US Canola Association, and Renewable Fuels Association.

“Farmers and businesses need to know this tax credit is here to stay before they can invest in dozens of new energy projects across rural America. With this bill they’ll have the certainty they need to accelerate innovation, create thousands of new jobs, and secure new markets for farmers and biofuel producers,” said Growth Energy CEO Emily Skor. “We applaud this leadership and thank all our rural champions for working to put American renewable fuel producers and farmers in the best possible position to succeed in next generation fuel markets.”

“ASA thanks Senators Marshall and Klobuchar for their leadership to ensure the 45Z tax credit supports domestic biofuel producers and domestic biofuel feedstock suppliers like soybean farmers,” said American Soybean Association President Caleb Ragland. “The updated Farmers First Fuel Incentives Act includes one of our top priorities: removing arbitrary indirect land use change calculations, which put soy and all of US agriculture at a disadvantage to imported waste feedstocks of dubious origin. This legislation provides a roadmap for how the 45Z tax credit can be improved to support farmers, and we are glad to support its introduction.”

“American tax incentives should support American farmers — not put them at a disadvantage. Ensuring that only domestic feedstocks such as U.S.-grown soybeans qualify for U.S. tax credits is a straightforward way to strengthen our domestic supply chain and rural economy,” said National Oilseed Processors Association (NOPA) President and CEO Devin Mogler. “At the same time, eliminating the outdated and flawed Indirect Land Use Change (ILUC) penalty removes an arbitrary barrier that unfairly punishes US producers while benefiting foreign competitors. We appreciate Congresswoman Kaptur, Congressman Mann, and Senators Marshall and Klobuchar for their leadership to ensure the Clean Fuel Production Credit works as intended — to support American agriculture and American energy.”

“We are deeply appreciative of these leaders for introducing legislation that establishes requirements for a tax credit that will level the playing field for America’s corn growers,” said National Corn Growers Association President Kenneth Hartman Jr. “This bill brings American farmers a step closer to unlocking an exciting new market with global reach.”

“We appreciate the focus on “farmers first” legislation and the support of 45Z and domestic feedstocks like sorghum,” said Amy France, Chair of the National Sorghum Producers. “Domestic biofuel production remains critical to our farm and our country’s success.”

“The US Canola Association strongly supports the removal of arbitrary and uncertain indirect land use change (ILUC) assumptions from the calculation of federal clean fuel production tax credits,” said Tim Mickelson, President of the US Canola Association. “We applaud the sponsors and co-sponsors for their efforts to improve and extend the tax credit for biofuels. The flawed assumptions used to calculate indirect emissions have resulted in canola being excluded despite being a proven feedstock that the US EPA’s analysis conservatively shows reduces emissions up to 78%.  We urge Congress to enact these important changes to provide certainty, stability, and market opportunity for canola growers and our biofuels industry partners.”

You can find the full House bill text by clicking here.

Background:

• Congresswoman Kaptur initially introduced this legislation in 2024.

• In 2024, Congresswoman Kaptur also led multiple bipartisan letters calling for the US Department of the Treasury to restrict the eligibility of the 45Z Tax Credit to renewable fuels made only from domestically sourced feedstocks, like Kansas soybean oil and corn oil.

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