Growth Energy Welcomes Bipartisan Push for 45Z Extension

WASHINGTON, D.C.- Today, Growth Energy praised the introduction of new legislation that would extend the 45Z clean fuels credit, which is currently slated to expire at the end of 2027.

The 45Z extension bill, the Farmer First Fuel Incentives Act, is sponsored by Senators Roger Marshall (R-Kan.) and Sherrod Brown (D-Ohio), with companion legislation introduced by Representatives Tracey Mann (R-Kan.) and Marcy Kaptur (D-Ohio) in the House of Representatives. Senators Pete Ricketts (R-Neb.), Amy Klobuchar (D-Minn.), Deb Fischer (R-Neb.), Tammy Baldwin (D-Wisc.), and Tina Smith (D-Minn.) also cosponsored the legislation. The current tax credit would be extended for seven years, and new requirements would prioritize domestic feedstocks for low-carbon fuels, like bioethanol.

"This important bill sends a strong signal that the 45Z extension is going to be a top, bipartisan priority in this Congress and the next," said Growth Energy CEO Emily Skor. "We applaud Senators Brown, Marshall, and all our rural champions for working to give biofuel producers and our farm partners the long-term certainty we need to accelerate innovation in America's bioeconomy.

"With a longer runway from Congress, and clear, flexible, and timely guidance from the U.S. Department of the Treasury, we'll have the pieces in place to unlock billions of dollars in new clean energy investments across rural America."

Passed as part of the Inflation Reduction Act (IRA), the 45Z clean fuel production tax credit is intended to incentivize the production of low-carbon fuels in transportation on the ground and in the air. If implemented properly, Growth Energy's own research demonstrates that the credit would add $21.2 billion to the U.S. economy, generate nearly $13.4 billion in household income, support more than 192,000 jobs across all sectors of the national economy, and provide farmers with a 10 percent premium price on low carbon corn used at a bioethanol plant.