Hawkeye Reporter

For more than 30 years, U.S. Sen. Chuck Grassley (R-Iowa) has worked to promote alternative energy in Iowa, beginning with the first federal wind energy tax credit. According to Grassley, wind energy now supports over 9,000 jobs in Iowa and provides more than 60% of the state's electricity. During negotiations on recent legislation known as the One Big Beautiful Bill, Grassley secured a provision allowing planned wind and solar projects a 12-month period to begin construction after the law’s enactment.

"My efforts will help accelerate near-term growth in these projects to get them from the drawing board to installation and production while also providing the industry a sensible pathway to self-sustainability. It puts wind and solar on a level playing field with other technologies with respect to imported materials and components. Specifically, I led efforts to strike a punitive new tax on wind and solar projects that would have sunk domestic production and investment, as well as job creation here at home," Grassley said.

Grassley also addressed measures aimed at strengthening Iowa's renewable fuels sector. He highlighted the importance of agriculture in Iowa’s economy, noting that nearly one in five Iowans works in agriculture or related industries. The new law expands domestic markets for feedstock by eliminating tax subsidies for renewable fuels produced from imported sources like used cooking oil from China or tallow and sugar cane from Brazil. In 2023, the U.S. imported three billion pounds of used cooking oil that qualified for such incentives.

"The U.S. taxpayer should not foot the bill for subsidies that benefit foreign farmers at the expense of corn and soybean farmers from Iowa," Grassley stated. "Ensuring our nation’s renewable fuel policies benefit American farmers was my top priority as I fought to improve and extend the Clean Fuels Production Tax Credit through 2029." He also noted transition relief was secured for small biodiesel producers who had closed during previous years due to regulatory challenges.

Regarding changes affecting farmers directly, Grassley pointed out that Congress updated the five-year Farm Bill after a two-year wait. The new law increases reference prices for crops between 2025 and 2031, raising benchmarks for farm payments under programs like Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC). These adjustments aim to address higher input costs faced by farming operations.

The legislation also improves crop insurance options for beginning farmers during their first decade of operation by increasing coverage levels and making certain policies more affordable.

Grassley highlighted provisions addressing estate taxes: "An unfair, punitive death tax would force sons and daughters to sell the family land to pay the federal estate tax liability. I’ve long championed efforts to repeal the death tax and was glad to support provisions in the new law that permanently boost the death tax exemption, raising it to $15 million for individuals and $30 million for couples."

The law further invests in conservation initiatives, agricultural research, trade promotion, and animal health programs intended to protect livestock producers against disease outbreaks such as New World screwworm (NWS), Highly Pathogenic Avian Influenza (HPAI), and African swine fever (ASF).