Farmer First Fuel Incentives Act

This bill changes the clean fuel production tax credit to favor fuels made from American-grown materials and to extend the credit for more years. It says fuel must use feedstocks produced or grown in the United States to qualify. It also updates how greenhouse gas emissions are counted for the credit by removing “indirect land use change” from the calculation. The credit is extended through the end of 2034, and the law tweaks how the emissions factor is rounded for the credit calculation.

Key points

• Who is affected: Farmers, biofuel and other clean fuel producers, and related supply chains in the U.S.
• What changes:
  • Only fuels made from U.S.-grown or U.S.-produced feedstocks can get the credit
  • Emissions calculations for the credit will exclude indirect land use change, with details set by federal agencies
  • The credit is extended from 2027 to 2034
  • The rounding method for the emissions factor used in the credit is adjusted
• When:
  • U.S.-only feedstocks rule applies to fuel sold after December 31, 2024
  • New emissions calculation applies to emissions rates published for tax years starting after December 31, 2025
  • Rounding change applies to fuel produced after December 31, 2024