Taxpayers for Common Sense, Environment America, U.S. PIRG, Friends of the Earth and the R Street Institute take issue with excluding emissions related to indirect land use change when calculating the credit’s value. Biofuel industry groups have long called for this change, but the coalition said these emissions can be “significant.” They also argue that subsidies for biofuel without these emissions factored in can contribute to food price hikes.
“Our nation is facing a fiscal crisis,” the groups wrote in a joint letter. “Extending the 45Z tax credit and loosening eligibility requirements would only increase costs without providing commensurate benefits to taxpayers.”
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