U.S. Senator Roger Marshall, M.D. introduced the bipartisan and bicameral Farmer First Fuel Incentives Act, which directs the Treasury Department to limit the 45Z Tax Credit to renewable fuels produced from domestically sourced feedstocks. The act also extends the tax credit to a full 10 years.

This 10-year extension provides the ethanol industry with the financial support and time to develop infrastructure, reduce reliance on foreign fuel, create new markets for farmers, and boost ethanol production in the Midwest. However, a significant flaw in the current 45Z framework could result in taxpayers subsidizing Chinese-used cooking oil, undermining the use of U.S.-grown soy and corn oil in renewable diesel.

“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,” said Sen. Marshall, M.D. “This legislation puts farmers FIRST to ensure they are the primary beneficiaries of renewable fuel tax incentives and provides businesses a decade of certainty.” This bill is co-led with Senator Sherrod Brown (D-OH) with companion legislation introduced by Representatives Mann (R-KS-01) and Kaptur (D-OH-09) in the House of Representatives. Senator Pete Ricketts (R-NE), Amy Klobuchar (D-MN), Deb Fischer (R-NE), Tammy Baldwin (D-WI), and Tina Smith (D-MN) also cosponsored the legislation.