H.R. 2867

119th CONGRESS 1st Session

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 HOUSE OF REPRESENTATIVES · April 10, 2025 · Sponsor: Mr. Mann · Committee: Committee on Ways and Means

H.R. 2867

SEC. 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
- of the Internal Revenue Code of 1986 is amended— Section 45Z(f)(1)(A)
  - in clause (i)(II)(bb), by striking and at the end,
  - in clause (ii), by striking the period at the end and inserting , and
    - (iii) such fuel is derived from a feedstock which was produced or grown in the United States.
  - by adding at the end the following new clause:
(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
- of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause: Section 45Z(b)(1)(B)
- In general
  - (iv) 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

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

SEC. 5. Rounding of clean fuel production credit emissions factor

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