Legislation Introduced to Renew Expired Biodiesel Tax Incentive

The tax incentives for biodiesel may be extended if Iowa’s Chuck Grassley and Oregon’s Ron Wyden have their way.  The two senators introduced legislation last week, providing a two-year extension of expired temporary tax incentives, including the biodiesel and renewable diesel tax incentive.  The legislation also includes important tax provisions for those impacted by natural disasters.

Kurt Kovarik, National Biodiesel Board Vice President of Federal Affairs, said his organization is hopeful the House and Senate will address the expired provisions “as soon as possible.”  Congress renewed the biodiesel tax incentive in February of 2018, but only retroactively for the previous year.

“Biodiesel producers have counted on the credits to secure blending contracts and financing for plant expansions and upgrades,” Kovarik said, “Now they’re facing the longest period of uncertainty ever, as the tax incentive remains expired two full months after the start of 2019.”

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