Shaw: Retroactive Tax Credit Good but Not Good Enough
February 9, 2018
Contact: Cassidy Walter
JOHNSTON, IOWA – Early Friday morning Congress passed a one-year retroactive extension of the $1-dollar biodiesel production tax credit as part of a two-year budget package. The credit will be applied to biodiesel production for 2017 but is not in place for 2018 as the industry had hoped. In response to these events, Iowa Renewable Fuels Association Executive Director Monte Shaw made the following statement:
“While we are pleased the credit was restored for 2017, in 25-plus years of monitoring federal legislation, this is the most ridiculous outcome I’ve ever seen. We will continue to work for a quick extension for 2018 and ultimately a common-sense long-term extension. When you consider that petroleum is in its 105th consecutive year of federal tax preferences, it is ridiculous that U.S. House members objected to the two-year extension. Today, just as yesterday, the industry has to produce and market biodiesel with no certainty over what the final financial situation will be. That is not any way to run a business.”
The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 43 ethanol refineries capable of producing nearly 4.4 billion gallons annually – including approximately 55 million gallons of annual cellulosic ethanol production capacity – and 12 biodiesel facilities with the capacity to produce 400 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.