Some Senate and House Republicans are working to prevent clean fuel tax credits established in the Biden-era Inflation Reduction Act from being eliminated during the upcoming budget reconciliation process.
Renewable Fuels Association head Geoff Cooper says clean fuel tax credits are needed to help encourage production of biofuel and sustainable aviation fuel. He says farm state voices are getting through to the Washington, D.C., lawmakers.
“We’ve been pleased to see more and more voices from the Republican Party who see value in some of these IRA programs, namely 45Z, 45Q, and the 45Z hydrogen credit. They support sustainable aviation fuel.”
Four Republican Senators wrote to Majority Leader and South Dakota Senator John Thune this month (April 9, 2025) asking for a “targeted, pragmatic approach” in repealing credits. Cooper says that’s a better strategy than one that’s harmful to biofuels investment, planning and jobs.
“They’re seeing investment, or big plans for investment, in their districts and states as a result of some of these IRA provisions.”
Thus, Cooper says, the competition and search for offsetting savings in the sweeping budget reconciliation process.
“We’re hopeful and expecting that the Trump Administration will not just throw the whole IRA out the window and claw back any unspent funding.”
Cooper says key voting blocs are defending farmers and biofuels, so he believes there’s still a chance to get funding for the clean fuel tax credits.
Story courtesy of the National Association of Farm Broadcasting.
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