Democrat Reps Urge Extension of Biofuels Tax Incentive

Cindy Zimmerman Leave a Comment

Rep. Abby Finkenauer (D-IA) and Rep. Kendra Horn (D-OK) spearheaded a Democratic caucus letter to House leadership this week urging action on extension of the biodiesel tax credit. Specifically, the lawmakers are asking for extensions of the biodiesel, alternative fuel vehicle refueling property, and second generation biofuel producer tax credits.

“The biodiesel tax credit has become vital to Iowa’s economy by bringing down gas prices, creating opportunities for farmers and biofuel producers, and bringing down greenhouse gas emissions. Especially now, with farm income at its lowest point in more than a decade and our farmers caught in the cross-hairs of the President’s trade war with China, is not the time to walk away from tax credits that have become so important to Iowa’s soybean growers,” Congresswoman Finkenauer said.

The National Biodiesel Board (NBB) thanked the Democratic Representatives, especially the freshman members, and emphasized that renewing the biodiesel tax credits before the end of the year is crucial to reviving production, reopening production facilities, and saving jobs.

NBB Vice President of Federal Affairs Kurt Kovarik said, “Nine biodiesel producers – in Alabama, Connecticut, Georgia, Iowa, Michigan and Texas – have been forced to close, cut production, and lay off workers. That’s because blenders count on Congress to renew the tax credit and demand a discount on the price of biodiesel. As a result, producers have taken a loss for nearly two years now. The entire industry needs Congress to act before the end of the year and renew expired tax extenders.”

Biodiesel, NBB

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