Congress to Pass Five-Year Extension of Biodiesel Tax Credit
December 17, 2019
Contact: Cassidy Walter
Cellulosic Tax Credit Also Extended through 2020
JOHNSTON, IOWA – Early this morning Congressional leaders announced a five-year extension of the biomass-based diesel tax credit as part of a year-end tax extenders package.
After midnight last night an agreement was reached between U.S. Senate and House leadership following negotiations led by Senator Chuck Grassley to extend the tax credit retroactively for 2018 and 2019 and through 2022. The credit has been expired since December 2017. The bill also included an extension of the cellulosic ethanol credit through 2020.
“Passage of the biodiesel tax credit is much-needed good news in rural America,” said Iowa Renewable Fuels Association Executive Director Monte Shaw. “We thank Senator Grassley for working into the wee hours of the morning to ensure this crucial policy finally moves forward. This credit has long been a priority for the Senator, and as Chairman of the Senate Finance Committee he has shepherded it through to spark the growth of next generation biofuels. And we thank Senator Joni Ernst for her efforts, talking with the President and other White House officials late into the night to see this credit across the finish line.
“For nearly two years biodiesel producers have operated with great uncertainty. The absence of the tax credit harmed the financial viability of the biodiesel industry and threatened its future. Today’s bill provides a multi-year path forward for this young industry – boosting biodiesel production, securing jobs in rural communities, and enhancing greenhouse gas reductions.”
While Senator Grassley has fought for the past two years to reinstate the tax credit, part of the challenge to passage was making the credit a priority for House leadership.
“We thank Representatives Dave Loebsack, Abby Finkenauer, and Cindy Axne for working diligently among their colleagues in the House to build support for the credit and impressing upon their leadership just how important the biodiesel credit is to rural America,” Shaw said. “Iowans remain united behind a growing role for biofuels and today’s news provides a boost for Iowa’s economy heading into a new year.”
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 over 4.5 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 11 biodiesel facilities with the capacity to produce nearly 400 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.