Home News Grassley files amendment to modify bio-diesel tax credit

Grassley files amendment to modify bio-diesel tax credit

by Ben Nuelle

Some in congress are trying to add energy tax credits to the Federal Aviation Administration bill being looked at this week.

 

Every couple of years, congress enacts legislation to fund the FAA. Funding runs out July 15th but the Senate plans to look at the bill this week.

Senator Chuck Grassley says energy tax provisions may make it into the bill.

“Just in case that opportunity comes I am filing an amendment to modify the biodiesel tax credit. Congress created the biodiesel tax incentive in 2005 and a good result since then. The Renewable Fuels Standard as well provides significant benefits to the nation with this biodiesel product.”

Grassley and Senator Cantwell of Washington proposed a modification to the current incentives.

“We’d make the credit available to domestic production of biodiesel rather than a mixture credit available to a blender of the fuel. Converting to a producer credit makes sense. The blender credit can be hard to administer. Blending can occur at many different stages of the fuel distribution. This can make it difficult to ensure only fuel that qualifies for the credit claims the incentive.”

Grassley says there’s been abuse of this in the past.

“A credit for domestic production will also insure we are incentivizing domestic industry rather than imported biofuels.”

 

 

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