U.S. legislation favors local biofuel producers

Tax credits to promote domestic sustainable aviation fuel

In a significant legislative step, the U.S. Congress saw the introduction of bills aiming to extend substantial tax credits for sustainable aviation fuel, exclusively to domestic biofuel producers. This bipartisan initiative by Senators Roger Marshall, Sherrod Brown, and Representatives Tracey Mann, Marcy Kaptur targets strengthening the U.S. position in global climate efforts by supporting local agricultural practices and technology.

The National Corn Growers Association (NCGA) has expressed strong support for this legislation, highlighting the role of U.S. corn ethanol in the aviation sector's transition to greener fuels. 

According to NCGA President Harold Wolle, the legislation is crucial for maintaining fair competition and encouraging environmentally responsible farming practices tailored to different U.S. regions.

The focus is now on finalizing the specifics of the 45Z tax credits, included in the 2022 Inflation Reduction Act, to ensure they benefit U.S. producers without imposing undue burdens. These credits are pivotal in making the U.S. a leader in both agricultural innovation and climate-smart aviation solutions, setting a sustainable path forward for the industry.