Bill > S1422

This bill amends the Internal Revenue Code to modify the clean fuel production credit, which provides tax incentives for producing low-carbon transportation fuels. Specifically, the bill prohibits the use of foreign feedstocks (raw materials) for qualifying for the credit, requiring that feedstocks be produced or grown in the United States starting after December 31, 2024. The bill also adjusts how greenhouse gas emissions are calculated by excluding indirect land use changes, a method that will be determined by the Secretary of the Treasury in consultation with the Environmental Protection Agency and the Department of Agriculture. Additionally, the bill extends the clean fuel production credit from December 31, 2027, to December 31, 2034, and changes the emissions factor rounding from 0.1 to 0.01, which could potentially increase the tax credit for qualifying fuel producers. These changes aim to support domestic agricultural producers and encourage the development of cleaner transportation fuels within the United States.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1422/all-info