Referred to the House Committee on Ways and Means.
This bill amends Internal Revenue Code section 45Z (the clean fuel production credit). It requires feedstocks used to claim the credit be produced or grown in the United States, excludes indirect land-use change emissions from lifecycle emissions calculations, extends the credit’s expiration from December 31, 2027 to December 31, 2034, and increases emissions-factor rounding precision from 0.1 to 0.01.
Environmental integrity: liberals worry ILUC exclusion understates emissions.
Relative to its intended legislative type, this bill provides concrete statutory amendments to the Internal Revenue Code that clearly change eligibility and calculation rules for the clean fuel production credit and extends its expiration.
This bill amends Internal Revenue Code section 45Z (the clean fuel production credit).
It requires feedstocks used to claim the credit be produced or grown in the United States, excludes indirect land-use change emissions from lifecycle emissions calculations, extends the credit’s expiration from December 31, 2027 to December 31, 2034, and increases emissions-factor rounding precision from 0.1 to 0.01.
The domestic feedstock and rounding changes apply to fuel produced or sold after December 31, 2024; the emissions-rate change applies to taxable years beginning after December 31, 2025.
Narrow, constituency‑friendly changes but significant revenue cost and contested ILUC removal reduce odds absent inclusion in a larger legislative package.
Relative to its intended legislative type, this bill provides concrete statutory amendments to the Internal Revenue Code that clearly change eligibility and calculation rules for the clean fuel production credit and extends its expiration. It specifies regulatory delegation and effective dates, but omits critical operational details, fiscal acknowledgment, and safeguards needed to implement and enforce the new rules without ambiguity.
Environmental integrity: liberals worry ILUC exclusion understates emissions.
These are examples from the analysis, not a ranked list of the most-affected groups.
Environmental integrity: liberals worry ILUC exclusion understates emissions.
Likely skeptical overall.
While the domestic-feedstock requirement may support U.S. farmers, excluding indirect land-use change (ILUC) risks understating lifecycle emissions and weakening climate accountability.
Extending the credit raises concerns about continued public subsidy without stronger greenhouse gas safeguards.
Mixed but cautiously receptive.
The bill provides clearer domestic sourcing rules and extends policy certainty, which can aid investment planning.
However, excluding indirect land-use change and potential supply constraints raise questions about environmental integrity and market effects, so procedural safeguards would be sought.
Generally favorable.
The domestic-feedstock requirement supports American farmers and reduces reliance on foreign inputs.
Excluding indirect land use change simplifies regulatory burdens and boosts the credit’s usability.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Narrow, constituency‑friendly changes but significant revenue cost and contested ILUC removal reduce odds absent inclusion in a larger legislative package.
The bill has not accumulated any surfaced votes yet.
Environmental integrity: liberals worry ILUC exclusion understates emissions.
Narrow, constituency‑friendly changes but significant revenue cost and contested ILUC removal reduce odds absent inclusion in a larger legi…
Relative to its intended legislative type, this bill provides concrete statutory amendments to the Internal Revenue Code that clearly change eligibility and calculation rules for the clean fuel production credit and ext…
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