Sens. Ernst, Grassley urge IRS to pay BTC claims quickly

By Ron Kotrba | February 19, 2020

Sens. Joni Ernst, R-Iowa, and Chuck Grassley, R-Iowa, are urging the Internal Revenue Service to quickly process 2018-’19 biodiesel tax credit (BTC) claims after Congress reinstated the incentive retroactively from Jan. 1, 2018, through Dec. 31, 2022, and after President Trump signed the bill into law in late December.  

“With our strong support, Congress took action and renewed the tax incentive for five years in order to support this important industry and provide a positive market signal,” the senators wrote in a letter dated Feb. 13 to IRS Commissioner Charles Rettig. “Timely payment of claims for 2018 and 2019 is necessary for the recovery of the entire biodiesel industry, including producers, blenders and farmers.”

Kurt Kovarik, the vice president of federal affairs for the National Biodiesel Board, said, “The senators stood with our industry to urge their colleagues to renew the credit, issued last-minute appeals to ensure its passage, and have now followed through to see that the credit provides a much-needed economic lifeline to biodiesel producers and farmers.”

Tom Brooks, general manager of Western Dubuque Biodiesel, said Ernst and Grassley have been vocal and effective champions for the industry, not only on the issue of the tax credit, but also in maintaining the integrity of the Renewable Fuel Standard.

Reinstatement of the BTC came at a critical time, said Grant Kimberley, executive director of the Iowa Biodiesel Board, and it will help prevent the closure of additional plants.

“But it is imperative payments get made soon,” Kimberley said. “We are optimistic the IRS will heed the plea of Senators Ernst and Grassley and process these claims quickly. We have every confidence in the industry’s ability to recover and thrive.”

Dave Walton, executive director with the Iowa Soybean Association, said, “Renewal of the biodiesel tax incentive will help sustain and build an important market for Iowa's soybean growers, who faced a very tough season last year. We appreciate that Senators Ernst and Grassley stood with Iowa's farmers and biodiesel producers throughout the challenges.”

The IRS recently released a revised Form 8849 Schedule 3 necessary to file claims for the retroactive BTC.

Meanwhile, two industry veterans—Joe Jobe of Rock House Advisors and Peter Behrle of PB Renewables—are facilitating bridge loan funding for claimants who are expecting BTC refunds but cannot wait for disbursement.

 

 
 
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