There were a number of new things to see (and eat) at this year’s Iowa State Fair. Among the things to see was a lively field hearing titled, “The Success of Pro-Growth, Pro-Worker Tax Policy in the American Midwest.” Hosted by the House Ways and Means Committee, the event gave our biofuels champions in Congress a chance to highlight the benefits of biofuel tax credits, and explore how U.S. tax policy is impacting opportunities for small-town communities–like those in Iowa and across the Midwest where farmers, biofuel producers, and rural workers are fueling a new era for America’s bioeconomy.

Few topics received as much attention as the 45Z clean fuels credit, which is slated to take effect in 2025. The credit was signed into law two years ago, and will become the primary incentive for the production of low-carbon fuels in transportation on the ground and in the air.

Properly implemented, 45Z could unlock major new investments in Sustainable Aviation Fuel (SAF), climate-smart agriculture, and other low-carbon innovations. That’s why Growth Energy has been working hand-in-hand with our leaders on Capitol Hill to ensure that the Biden Administration gives producers and our farm partners the certainty and flexibility we need to find the path that works best for American agriculture.

Speakers on hand who echoed that message included Jolene Riessen, President of the Iowa Corn Growers Association, and Steve Sukup, President and CEO, Sukup Manufacturing – a Growth Energy member.

For more insights from these witnesses — and our allies in Congress — check out some highlights below.

Rep. Zach Nunn: “I am proud that on day one as a freshman, I went against the establishment to make sure we fought for key tax credits that impact our state. Working with this team here, we held together that we made sure that biofuels were part of America’s energy solution and our national security solution.

Rep. Randy Feenstra: Right now, over 50% of our crop, corn and soybeans, goes to biofuels. Right now, if you look at our commodity prices, corn is under $5 and soybeans are under $10. Now, we could export more or we could use more of it. How do you use more? You do it through biofuels, ethanol, and biodiesel. To do that, we have to grow our markets through sustainable aviation fuel and other things. So I want to talk about 45Z. This is a tax credit that can dramatically expand markets. Right now, we have a thumb on the scale for electric vehicles and not liquid fuels. This gives us an opportunity to compete. And if we don’t, we’re going to probably see our commodity prices cut nearly in half again. Ms. Riessen can you talk about this?

Jolene Riessen: That 45Z is going to be a gamechanger for us when it comes to grain price. With 45Z, consumers are asking for low-carbon, so, one way of doing that is through carbon sequestration and 45Z helps ethanol plants get set up to be able to do that. When we do that, my corn goes to that ethanol plant, and we make better markets and prices.

In a recent study I saw, for every dollar invested in 45Z, it will return $4-$6.

Rep. Randy Feenstra: When our farmers are successful, our main streets are successful, our hospitals are successful, our schools, everything is successful.

Rep. Darin LaHood: I mentioned that I have a heavy ag district, and the potential economic growth around the biofuels industry. Again, I have been very engaged and spent a lot of time talking about it. As we look to future tax policy proposals, can you comment on the specific pro-growth initiatives that can better support our farmers and biofuel producers?

Steve Sukup: Well, practically one of every two rows of corn goes to biofuels. It provides us with energy self-sufficiency here in the U.S., which I think is absolutely critical and it can provide, going into 45Z, more incentives to reduce carbon emissions.

Rep. Nicole Malliotakis: Can you talk as farmers about how energy drives up the cost of food for the people I represent in New York? And also maybe you want to touch on some of the renewable energy sources that we can derive from corn?

Jolene Riessen: Ethanol is available – and you can put it right in the gas tank. We are pushing for the Next Generation Fuels Act to be passed to increase the amount of ethanol in the tank. This is from the American Lung Association, for every percent of ethanol that we are able to put into that fuel tank, we are also reducing our healthcare costs because we are taking particulates out of the air.

Steve Sukup: Biofuels are critical across the U.S. for energy efficiency and self-sustainability. That is what we have to increase. It lowers prices throughout.