Grassley, 13 Others Introduce Biodiesel Tax Incentive Extension
July 25, 2016 - Issue #218View Full Issue
Senator Chuck Grassley (R-Iowa) and 13 other co-sponsors, including Sen. Joni Ernst (R-Iowa), recently introduced a bill that would modify the $1.00 per gallon biodiesel blenders’ tax credit to a producers’ credit and extend it for three years.
“We applaud Sen. Grassley for leading the charge, and his colleagues, like Sen. Joni Ernst, for working on this common sense modification and extension that will support American jobs and energy security,” stated Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “The latest Energy Information Administration estimates show U.S. biodiesel production could actually take a step backwards this year. This is due to the latest Department of Commerce numbers showing biodiesel imports are surging, reaching a two-and-a-half-year high in May and currently making up about one-third of the U.S. biodiesel market. These soaring imports, coupled with the EPA’s lackluster Renewable Fuel Standard proposal, demonstrate the need to modify the credit to a domestic producers’ incentive and provide some longer-term certainty for the U.S. biodiesel industry.”
After being reinstated in late 2015, the federal biodiesel tax incentive is set to expire again on December 31, 2016.
“Biodiesel and renewable diesel producers around the country are yet again facing what effectively amounts to a tax increase in less than six months. Congress can keep that from happening by passing this bill,” stated National Biodiesel Board (NBB) Vice President of Federal Affairs Anne Steckel. “It will give producers the certainty they need to hire and grow in the coming years. It will continue our success in diversifying the diesel market and reducing our dependence on petroleum. And it will help clean the air by cutting carbon emissions and other pollution.”
Steckel added, “It also will appropriately reform this incentive by applying it only to domestic biodiesel production, ending a growing practice where foreign producers are taking advantage of our tax system. Our tax law should not be incentivizing foreign fuel, and this bill fixes that loophole so that we’re stimulating jobs and economic development here at home.”