This bill, known as the "Farmer First Fuel Incentives Act," significantly amends the Internal Revenue Code to modify the clean fuel production tax credit. It mandates that eligible transportation fuel must be derived from feedstocks produced or grown in the United States , thereby directing incentives towards domestic agriculture and energy production. The legislation also extends the clean fuel production credit's availability from December 31, 2027, to December 31, 2034 , providing a longer-term incentive for clean fuel development. Additionally, it refines the calculation of lifecycle greenhouse gas emissions by requiring the exclusion of indirect land use changes and increases the precision of the emissions factor rounding from 0.1 to 0.01 for a more accurate credit determination.
This bill, known as the "Farmer First Fuel Incentives Act," significantly amends the Internal Revenue Code to modify the clean fuel production tax credit. It mandates that eligible transportation fuel must be derived from feedstocks produced or grown in the United States , thereby directing incentives towards domestic agriculture and energy production. The legislation also extends the clean fuel production credit's availability from December 31, 2027, to December 31, 2034 , providing a longer-term incentive for clean fuel development. Additionally, it refines the calculation of lifecycle greenhouse gas emissions by requiring the exclusion of indirect land use changes and increases the precision of the emissions factor rounding from 0.1 to 0.01 for a more accurate credit determination.