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“One big, beautiful bill” includes 45Z extension

The federal budget reconciliation bill, often called the “one big, beautiful bill” by President Trump, includes a tax extension beneficial to the biofuels industry and the production of sustainable aviation fuel.

The bill offered by House Ways and Means Committee Chair Jason Smith of Missouri includes changes and an extension to the Clean Fuel Production Credit known as 45Z, which was created in the Inflation Reduction Act under President Biden.

Late Monday, Renewable Fuels Association President Geoff Cooper issued a statement saying, “As the budget reconciliation process moves along, we are encouraged to see the inclusion of important tax provisions in the House Ways and Means Committee text released today. The draft language would extend the 45Z clean fuel production credit by four years, while also reinstating crucial tax benefits related to research and experimentation. These tax policies can help support expanded production of American energy, accelerate technology innovation, and boost rural economies by creating manufacturing jobs and opening new markets for America’s farmers.”

The proposed changes include prohibiting foreign owned entities from benefiting from the tax credit and only giving credits if feedstock comes from the U.S., Mexico, or Canada. The House Ways and Means Committee is scheduled to discuss the bill Tuesday afternoon.