WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, welcomed news that Sen. Roger Marshall (R-Kan.) and Sen. Amy Klobuchar (D-Minn.) introduced a 45Z extension bill today that would extend the 45Z clean fuel production tax credit for seven years beyond its current expiration, set for the end of 2027.
“Farmers and businesses need to know this tax credit is here to stay before they can feel confident investing in dozens of new energy projects across rural America. With this bill they’ll have the certainty they need to accelerate innovation, create thousands of new jobs, and secure new markets for farmers and biofuel producers,” said Growth Energy CEO Emily Skor. “We applaud Sen. Marshall and Sen. Klobuchar for their leadership and thank all our rural champions for working to put American renewable fuel producers and farmers in the best possible position to succeed in next generation fuel markets.”
Growth Energy’s own research found that, if implemented properly, the 45Z tax 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 economy, and provide farmers with a 10 percent premium price on corn grown using regenerative agriculture practices and used as feedstock at an ethanol plant.
According to Sen. Marshall’s press release on the 45Z extension bill, the legislation would also “give the ethanol industry the time and financial incentive to build up the infrastructure needed for the U.S. to be less reliant on foreign fuel, open new markets for farmers, and increase ethanol production across the Midwest.”