Push for equitable U.S. biofuel tax credits

Oct 16, 2024
By Farms.com

Farm Bureau seeks fairness in fuel production credits

The American Farm Bureau Federation is pressing for critical changes to the tax credits related to biofuel production. The organization highlights a significant concern that the current structure of the Clean Fuel Production Credit and the Sustainable Aviation Fuel Credit disproportionately benefits foreign feedstocks, placing domestic producers at a disadvantage.

The federation's engagement with White House officials aims to rectify these imbalances by advocating for policy adjustments that favor domestic crop feedstocks. These changes are necessary as the credits, including 45Z set to take effect next year, influence production decisions that determine crop eligibility for these incentives.

The discussions focus on enhancing the flexibility of conservation and agricultural practices eligible for the credits.

By doing so, the federation hopes to expand the range of climate-smart agricultural practices that qualify, thus increasing participation among American farmers.

The federation's efforts are geared towards ensuring that federal biofuel incentives support the domestic agricultural sector, helping maintain its viability and competitiveness in a rapidly evolving energy landscape.

The goal is to secure a revision of the tax credit guidelines to better support the nation’s farmers and align with broader environmental and economic objectives.

Video: Understanding the Basics of the Renewable Fuel Standard

On Friday, April 24, 2026, from 12 noon–1:00 ET, the Penn State Center for Agricultural and Shale Law, alongside the Pennsylvania Department of Agriculture’s (PDA) Agricultural Business Development Center (ABDC), presented this webinar in the Understanding Agricultural Law Educational Series, a course designed to develop subject matter literacy and competence on fundamental issues of agricultural law for attorneys and business advisors who work with or represent agricultural or rural clients but may not necessarily specialize in agricultural law:

“Understanding the Basics of the Renewable Fuel Standard”

The Clean Air Act’s Renewable Fuel Standard (RFS) program requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels such as ethanol, biodiesel, or advanced biofuels. Established by the Energy Policy Act of 2005 and later expanded by the Energy Independence and Security Act of 2007, the RFS is implemented by the U.S. Environmental Protection Agency (EPA) in collaboration with the Department of Energy and the U.S. Department of Agriculture (USDA).

This webinar provides an overview of the legal authority and structure for the RFS program and explain how it works, including the program’s system of Renewable Identification Numbers (RINs) and categories of renewable fuels. Additionally, this webinar addresses EPA annual volume requirement rulemaking and associated recent legal issues.