Bills aim to extend biodiesel, renewable diesel tax credit

By Erin Voegele | May 25, 2021

Legislation introduced in the both the U.S. House of Representatives and the U.S. Senate on May 25 aims to extend the current blenders credit for biodiesel and renewable diesel for three years, through the end of 2025. The $1 per gallon blenders tax credit is currently set to expire at the end of 2022.

Sens. Chuck Grassley, R-Iowa, and Maria Cantwell, D-Wash., introduced the bill, titled the Biodiesel Tax Credit Extension Act of 2021, in the Senate. Sens. Joni Ernst, R-Iowa; Amy Klobuchar, D-Minn.; Roger Marshall, R-Kan.; Jeanne Shaheen, D-N.H.; Deb Fischer, R-Neb.; Mike Rounds, R-S.D.; Patty Murray, D-Wash.; Tina Smith, D-Minn.; and Mazie Hirono, D-Hawaii., have signed on to cosponsor the Senate bill. Reps. Cindy Axne, D-Iowa, and Mike Kelly, R-Pa., introduced companion legislation in the House. That bill has been cosponsored by Reps. Don Bacon, R-Neb.; Mike Bost, R-Ill.; Cheri Bustos, D-Ill.; David Cicilline, D-R.I.; Joe Courtney, D-Conn.; Angie Craig, D-Minn.; Rosa DeLauro, D-Conn.; Randy Feenstra, R-Iowa; Fischbach, R-Minn.; Guest, R-Miss.; Hagedorn, R-Minn.; Kevin Hern, R-Okla.; Ashley Hinson, R-Iowa; Himes, D-Conn.; Dusty Johnson, R-S.D.; Adam Kinzinger, R-Ill.; Darin LaHood, R-Ill.; John B. Larson, D-Conn.; Mariannette Miller-Meeks, R-Iowa; Marie Newman, D-Ill.; Greg Pence, R-Ind.; Terri Sewell, D-Ala.; Wagner, R-Mo.; and Jackie Walorski, R-Ind.

The National Biodiesel Board issued a statement welcoming the House and Senate bills. "As Congress looks to jumpstart economic growth, rebuild infrastructure and reduce carbon emissions, they can count on biodiesel and renewable diesel to help achieve those goals. Biodiesel production is supporting economic opportunities and job creation in rural communities across the country," said Kurt Kovarik, NBB vice president of federal affairs. "NBB's members sincerely thank Senators Grassley and Cantwell and Representatives Axne and Kelly, along with the 33 original cosponsors."

"The biodiesel tax credit continues to be extremely successful in expanding consumer access to clean, low-carbon fuels. Biodiesel and renewable diesel are on average 74 percent less carbon intensive than petroleum diesel and have cut more than 140 million tons of carbon emissions since 2010. Moreover, these cleaner, better fuels substantially cut emissions of particulate matter that impact cancer rates, asthma and other respiratory diseases, as well as the associated healthcare costs," Kovarik added.

The Iowa Biodiesel Board is also applauding the tax extender bills. “As the nation takes steps to reduce carbon and spur the economy with new jobs and upgraded infrastructure, we are encouraged to see members of Congress recognize the valuable role biodiesel can play in all of these goals,” said Grant Kimberley, executive director of the IBB. “Iowa has much to gain from a thriving biofuels industry, as it has become inextricably linked to our economic growth and the viability of our many farms. We are grateful to Sen. Grassley for his long-term leadership in advocating for stability in this vital biodiesel tax credit. We also thank Rep. Axne for embracing biodiesel, and for working to ensure it has a seat at the table for carbon reduction strategies now and in the future.”

 

 
 
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