Bill to Reform, Extend Biodiesel Tax Credit Introduced in U.S. House
May 17, 2016 - Issue #217View Full Issue
Representatives Kristi Noem (R-S.D.) and Bill Pascrell (D-N.J.) recently introduced legislation that would reform the current federal biodiesel blenders tax credit to a domestic producer’s credit, and extend it through 2019.
“This commonsense, forward-thinking reform would provide some much needed certainty in the marketplace, and allow the credit to be applied only to biodiesel gallons produced in the U.S. instead of incentivizing foreign production,” stated Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “With low commodity prices and a depressed farm economy, this extension and reformation can provide some relief in rural America.”
“While oil tax breaks remain permanently written into the tax code, the biodiesel tax incentive is yet again set to expire in less than eight months,” stated National Biodiesel Board (NBB) Vice President of Federal Affairs Anne Steckel. “This is no way to do business. Biodiesel producers need stable, predictable tax policy to continue to grow and hire. We want to thank Reps. Noem and Pascrell for taking the lead on this issue to create that stability and spur economic activity.”
“The bill from Reps. Noem and Pascrell is something ASA is extremely pleased to see, as it seeks to extend the biodiesel tax credit through 2019, and restructures the credit to further promote value-added domestic production,” stated American Soybean Association (ASA) President Richard Wilkins. “If not renewed, the dollar-per-gallon credit will expire at the end of this year putting a damper on production and preventing the industry from maximizing the benefits provided from this domestic, renewable energy source.”