Farmer First Fuel Incentives Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1422 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1422

   To amend the Internal Revenue Code of 1986 to prohibit the use of 
 foreign feedstocks for purposes of the clean fuel production credit, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 10, 2025

Mr. Marshall (for himself, Ms. Klobuchar, Ms. Ernst, Mrs. Fischer, Ms. 
Slotkin, Ms. Baldwin, and Mr. Ricketts) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to prohibit the use of 
 foreign feedstocks for purposes of the clean fuel production credit, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Farmer First Fuel Incentives Act''.

SEC. 2. PROHIBITION ON FOREIGN FEEDSTOCKS FOR CLEAN FUEL PRODUCTION 
              CREDIT.

    (a) Prohibition on Foreign Feedstocks.--Section 45Z(f)(1)(A) of the 
Internal Revenue Code of 1986 is amended--
            (1) in clause (i)(II)(bb), by striking ``and'' at the end,
            (2) in clause (ii), by striking the period at the end and 
        inserting ``, and'', and
            (3) by adding at the end the following new clause:
                            ``(iii) such fuel is derived from a 
                        feedstock which was produced or grown in the 
                        United States.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to transportation fuel sold after December 31, 2024.

SEC. 3. DETERMINATION OF EMISSIONS RATE.

    (a) In General.--Section 45Z(b)(1)(B) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new clause:
                            ``(iv) Exclusion of indirect land use 
                        changes.--Notwithstanding clauses (ii) and 
                        (iii), the lifecycle greenhouse gas emissions 
                        shall be adjusted as necessary to exclude any 
                        emissions attributed to indirect land use 
                        change. Any such adjustment shall be based on 
                        regulations or methodologies determined by the 
                        Secretary in consultation with the 
                        Administrator of the Environmental Protection 
                        Agency and the Secretary of Agriculture.''.
    (b) Conforming Amendment.--Section 45Z(b)(1)(B)(i) of such Code is 
amended by striking ``clauses (ii) and (iii)'' and inserting ``clauses 
(ii), (iii), and (iv)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to emissions rates published for taxable years beginning after 
December 31, 2025.

SEC. 4. EXTENSION OF CLEAN FUEL PRODUCTION CREDIT.

    Section 45Z(g) of the Internal Revenue Code of 1986 is amended by 
striking ``December 31, 2027'' and inserting ``December 31, 2034''.

SEC. 5. ROUNDING OF CLEAN FUEL PRODUCTION CREDIT EMISSIONS FACTOR.

    (a) In General.--Section 45Z(b)(2) of the Internal Revenue Code of 
1986 is amended by striking ``0.1'' each place it appears and inserting 
``0.01''.
    (b) Effective Date.--The amendments made by this section shall 
apply to transportation fuel produced after December 31, 2024.
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