Farmer First Fuel Incentives Act

This bill amends the Internal Revenue Code to change the clean fuel production credit by requiring domestic feedstocks, adjusting emissions calculations, extending the credit, and refining emissions factor rounding.

Sec. 2, Prohibition on foreign feedstocks: The bill adds a requirement that for the clean fuel production credit, the fuel must be derived from a feedstock produced or grown in the United States. This applies to transportation fuel sold after December 31, 2024.

Sec. 3, Determination of emissions rate: The bill excludes emissions attributed to indirect land use change from lifecycle greenhouse gas emissions calculations for the credit. The adjustment will be based on regulations or methodologies determined by the Secretary, in consultation with the EPA Administrator and the Secretary of Agriculture. This applies to emissions rates published for taxable years beginning after December 31, 2025.

Sec. 4, Extension of clean fuel production credit: The bill extends the clean fuel production credit by changing the expiration date from December 31, 2027, to December 31, 2034.

Sec. 5, Rounding of clean fuel production credit emissions factor: The bill changes the rounding threshold for the emissions factor from 0.1 to 0.01. This applies to transportation fuel produced after December 31, 2024.