S.1422 - Farmer First Fuel Incentives Act (119th Congress)
Summary
The Farmer First Fuel Incentives Act amends the Internal Revenue Code of 1986 to modify the clean fuel production credit. It prohibits the use of foreign feedstocks for clean fuel production, adjusts the determination of emissions rates by excluding indirect land use changes, extends the clean fuel production credit through 2034, and refines the rounding of the clean fuel production credit emissions factor.
Expected Effects
The Act aims to incentivize the use of domestically produced feedstocks for clean fuel, potentially boosting the agricultural sector. By excluding indirect land use changes from emissions calculations, the bill could alter the perceived environmental impact of certain fuels. The extension of the credit provides long-term certainty for clean fuel producers.
Potential Benefits
- Increased demand for domestically produced agricultural feedstocks.
- Potential for job creation in the agricultural and biofuel sectors.
- Long-term certainty for investors in clean fuel production.
- Refined emissions calculations may lead to more accurate assessments of environmental impact.
- Could promote energy independence by relying on domestic resources.
Potential Disadvantages
- Potential for increased costs for clean fuel production due to reliance on domestic feedstocks.
- Exclusion of foreign feedstocks may limit the diversity of available resources.
- Changes to emissions calculations could be seen as weakening environmental standards.
- The Act may face challenges related to enforcement and compliance.
- Potential trade disputes with countries that export feedstocks.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble) by aiming to promote economic activity and energy security. Congress has the power to levy taxes and provide for the general welfare, as outlined in Article I, Section 8. The bill's provisions related to tax credits fall under this constitutional authority.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).