House Committee on Agriculture Chairman Glenn “GT” Thompson (R-PA) says the One Big Beautiful Bill passed by Congress Thursday is a “game-changer for America.”
“The One Big Beautiful Bill is a victory for rural America, making the largest investment in agriculture in decades, restoring integrity to SNAP, and saving millions of family farms from the death tax. This bill gives President Trump the tools he needs to keep America safe, strong, and free.”
Ethanol producer groups are pleased with the inclusion of several key tax provisions that will enhance the role of the U.S. ethanol industry in contributing to American energy security and innovation.
Renewable Fuels Association President and CEO Geoff Cooper says the bill provides more certainty for ethanol producers. “The extension and modifications to the 45Z clean fuel production credit, reinstatement of the Research and Development immediate expensing provisions, and improvement of the 45Q carbon sequestration and utilization credit will provide a growth-oriented tax policy climate that ethanol producers can count on, improving the role that renewable fuels can play in helping reach our nation’s energy independence goals.”
Specifically, the OBBBA includes the following improvements to the 45Z Clean Fuel tax provision:
Extends 45Z by two years, to the end of 2029.
Restricts eligibility for 45Z to fuels made from feedstocks grown in the U.S., Canada, and Mexico.
Retains full transferability throughout the term of the 45Z credit.
Harmonizes indirect land use change emissions with actual data and evidence, resulting in zero ILUC penalty for corn ethanol.
The American Coalition for Ethanol (ACE) CEO Brian Jennings says while it could have been better, they are pleased that the 45Z tax credit even made it into the final package.
“We’re grateful to our Congressional champions for their steadfast leadership to support and strengthen the 45Z credit, which is remarkable considering the fact most other IRA-era tax credits were limited or phased-out in the final package. While there were other improvements we had hoped to achieve in the final 45Z language, restoring transferability of the credit, removing indirect land use change (ILUC) penalties, and restricting feedstock eligibility to USMCA countries will strengthen the credit from its original version.”
President Trump will sign the One Big Beautiful Bill on Friday, the Fourth of July, which was his deadline to have the bill completed and on his desk.