Reps. Mann, Kaptur, Budzinski Lead Bipartisan, Bicameral Legislation to Prioritize Domestic Feedlots and Biofuels

WASHINGTON, D.C. –  U.S. Representatives Tracey Mann (KS-01), Marcy Kaptur (OH-09), and Nikki Budzinski (IL-13) reintroduced the bipartisan, bicameral Farmer First Fuel Incentives Act. The bill would restrict the eligibility of the 45Z Tax Credit to renewable fuels made only from domestically sourced feedstocks and extend the credit through 2034. U.S. Senators Roger Marshall, M.D. (R-KS) and Amy Klobuchar (D-MN) introduced companion legislation in the Senate. 

“American tax incentives should benefit American-grown products and American farmers, not foreign producers,” said Rep. Mann. “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 the grit and tenacity of American producers, not prop up feedstocks grown overseas.”

“Today, 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 Rep. Kaptur. “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.”

The Farmer First Fuel Incentives Act would extend the 45Z tax credit and give the ethanol industry the time and financial incentive to build up the infrastructure needed for the U.S. 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.

“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 Sen. Marshall. “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 U.S.A. It’s time our energy and agricultural policies reflect that.”

“Domestically produced biofuel strengthens our energy independence, supports our farmers, and boosts rural economies,” said Sen. Klobuchar. “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 legislation is supported by Growth Energy, American Soybean Association, National Oilseed Processors Association (NOPA), National Corn Growers Association, National Sorghum Producers, U.S. Canola Association, and Renewable Fuels Association.

“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.”

In September 2024, Rep. Mann introduced the Farmers First Fuel Incentives Act in the 118th Congress. That same month, Reps. Mann and Kaptur penned a letter to then-Treasury Secretary Janet Yellen, urging the Treasury to expedite the issuance of the 45Z tax credit. 

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For more information on Rep. Mann visit www.mann.house.gov