By Leah Douglas
WASHINGTON (Reuters) -U.S. Senate Republicans on Monday proposed a tax bill that would extend a clean fuel tax credit through 2031, but trim 20% of the value of the credit for biofuels made from feedstocks produced outside of the United States.
The tax credit, established by former President Joe Biden’s Inflation Reduction Act but not finalized during his tenure, could prove lucrative for oil and biofuel producers who can demonstrate lower carbon intensity of their fuels.
The House tax and spending bill passed in May also extends the tax credit, known as 45z, through 2031, but bans most foreign feedstocks from being eligible for credits.
Both the House and Senate bills would exclude the emissions from tilling land to grow feedstocks like corn and soy from calculation of a biofuel’s credit value.
That change would make it easier for corn-based ethanol to qualify for the credits.
(Reporting by Leah Douglas in WashingtonEditing by Matthew Lewis)
