Legislation to extend biodiesel tax credit introduced

by | Jun 19, 2019 | 5 Ag Stories, News

On Tuesday, House Ways and Means Select Revenue Measures Subcommittee Chairman Mike Thompson (D-CA 5th) introduced a bill to extend the biodiesel tax credit for three years. The good news is, it would finally end years of wrangling to get this tax credit extended, which many Ag state legislators have lobbied for. The bad news is, with the retroactive needs of the extension, this means it only would extend to 2020.

Audio: Full interview with Grant Kimberly of the Iowa Soybean Association

Grant Kimberly of the Iowa Soybean Association says the need to get a tax credit done for biodiesel is great. He says a level of certainty is needed.

Senator Chuck Grassley had supported a previous plan to extend the biodiesel tax credit over several years, but having the rate lower as the years progress. Kimberly says a plan like this will help provide the certainty the industry needs to upgrade its infrastructure like the oil industry has been able to do with their 100 plus years of tax credits.

Kimberly says the biodiesel industry isn?t looking for a handout. They just want a level playing field.

Iowa leads the nation in biodiesel production with eleven biodiesel production facilities.