As President Donald Trump prepares to take office in January, his administration will inherit a growing crisis in the biofuel industry. Unnecessary delays by the Biden administration in issuing critical tax credit guidance have left farmers and fuel producers in limbo, threatening a cornerstone of America’s domestic energy strategy. To stabilize the market, the Treasury and IRS must act now to provide clarity, and Congress should extend the current tax structure for at least an additional year. If these steps are not taken, Trump and the 119th Congress must prioritize resolving this issue to restore stability, deliver on promises of revitalized energy production, and secure America’s energy future.
Members of Congress from both sides of the aisle have introduced legislation to extend the existing tax structure, addressing these delays and safeguarding this industry. Biofuel credits—with their broad bipartisan backing—benefit from political support that enables reform rather than abandonment, for the benefit of American energy security. But support alone isn’t enough—the lack of timely action by federal agencies threatens to disrupt markets, punish farmers, and derail U.S. leadership in innovative energy solutions.
