S1422-119

1. Short title This Act may be cited as the Farmer First Fuel Incentives Act.

2. Prohibition on foreign feedstocks for clean fuel production credit Section 45Z(f)(1)(A) of the Internal Revenue Code of 1986 is amended— in clause (i)(II)(bb), by striking and at the end, in clause (ii), by striking the period at the end and inserting , and, and by adding at the end the following new clause: such fuel is derived from a feedstock which was produced or grown in the United States. The amendments made by this section shall apply to transportation fuel sold after December 31, 2024. (iii)such fuel is derived from a feedstock which was produced or grown in the United States..

3. Determination of emissions rate Section 45Z(b)(1)(B) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause: 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. Section 45Z(b)(1)(B)(i) of such Code is amended by striking clauses (ii) and (iii) and inserting clauses (ii), (iii), and (iv). The amendments made by this section shall apply to emissions rates published for taxable years beginning after December 31, 2025. (iv)Exclusion of indirect land use changesNotwithstanding 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..

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

5. Rounding of clean fuel production credit emissions factor Section 45Z(b)(2) of the Internal Revenue Code of 1986 is amended by striking 0.1 each place it appears and inserting 0.01. The amendments made by this section shall apply to transportation fuel produced after December 31, 2024.