Extension and modification of clean fuel production credit

(a) Prohibition on foreign feedstocks (1) In general Section 45Z(f)(1)(A) is amended— (A) in clause (i)(II)(bb), by striking and at the end, (B) in clause (ii), by striking the period at the end and inserting, and, and (C) by adding at the end the following new clause: (iii) such fuel is exclusively derived from a feedstock which was produced or grown in the United States, Mexico, or Canada.. (2) Effective date The amendments made by this subsection shall apply to transportation fuel sold after December 31, 2025. (b) Determination of emissions rate (1) In general Section 45Z(b)(1)(B) is amended by adding at the end the following new clauses: (iv) Exclusion of indirect land use changes Notwithstanding clauses (ii) and (iii), the lifecycle greenhouse gas emissions shall be adjusted as necessary to exclude any emissions attributed to indirect land use change. Any such adjustment shall be based on regulations or methodologies determined by the Secretary in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Agriculture. (v) Animal manures For purposes of the table described in clause (i), with respect to any transportation fuels which are derived from animal manure, a distinct emissions rate shall be provided with respect to each of the specific feedstocks used to such produce such fuel, which shall include dairy manure, swine manure, poultry manure, and such other sources as are determined appropriate by the Secretary.. (2) Conforming amendment Section 45Z(b)(1)(B)(i) is amended by striking clauses (ii) and (iii) and inserting clauses (ii), (iii), (iv), and (v). (3) Effective date The amendments made by this subsection shall apply to emissions rates published for taxable years beginning after December 31, 2025. (c) Extension of clean fuel production credit Section 45Z(g) is amended by striking December 31, 2027 and inserting December 31, 2031. (d) Restrictions relating to prohibited foreign entities (1) In general Section 45Z(f) is amended by adding at the end the following new paragraph: (8) Restrictions relating to prohibited foreign entities (A) In general No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)). (B) Other prohibited foreign entities No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D)).. (2) Effective date The amendment made by this subsection shall apply to taxable years beginning after the date of enactment of this Act.

(a) Prohibition on foreign feedstocks (1) In general Section 45Z(f)(1)(A) is amended— (A) in clause (i)(II)(bb), by striking and at the end, (B) in clause (ii), by striking the period at the end and inserting, and, and (C) by adding at the end the following new clause: (iii) such fuel is exclusively derived from a feedstock which was produced or grown in the United States, Mexico, or Canada.. (2) Effective date The amendments made by this subsection shall apply to transportation fuel sold after December 31, 2025. (b) Determination of emissions rate (1) In general Section 45Z(b)(1)(B) is amended by adding at the end the following new clauses: (iv) Exclusion of indirect land use changes Notwithstanding clauses (ii) and (iii), the lifecycle greenhouse gas emissions shall be adjusted as necessary to exclude any emissions attributed to indirect land use change. Any such adjustment shall be based on regulations or methodologies determined by the Secretary in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Agriculture. (v) Animal manures For purposes of the table described in clause (i), with respect to any transportation fuels which are derived from animal manure, a distinct emissions rate shall be provided with respect to each of the specific feedstocks used to such produce such fuel, which shall include dairy manure, swine manure, poultry manure, and such other sources as are determined appropriate by the Secretary.. (2) Conforming amendment Section 45Z(b)(1)(B)(i) is amended by striking clauses (ii) and (iii) and inserting clauses (ii), (iii), (iv), and (v). (3) Effective date The amendments made by this subsection shall apply to emissions rates published for taxable years beginning after December 31, 2025. (c) Extension of clean fuel production credit Section 45Z(g) is amended by striking December 31, 2027 and inserting December 31, 2031. (d) Restrictions relating to prohibited foreign entities (1) In general Section 45Z(f) is amended by adding at the end the following new paragraph: (8) Restrictions relating to prohibited foreign entities (A) In general No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)). (B) Other prohibited foreign entities No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D)).. (2) Effective date The amendment made by this subsection shall apply to taxable years beginning after the date of enactment of this Act.