Biodiesel advocates from Iowa were on Capitol Hill this week to talk with members of Congress about the need for a reformed biodiesel tax incentive.
Bills have been introduced in Congress to reinstate the biodiesel tax credit, and reform it from a blenders credit to a producers credit and fix a loophole where foreign biodiesel producers can take advantage of the credit at the expense of U.S. taxpayers. The group also asked Iowa’s representatives to stand strong on the Renewable Fuel Standard (RFS) and oppose any efforts to undermine the statute.
“Both the tax incentive and RFS are examples of successful bipartisan policies that make sense, and we’re grateful to our state’s delegation for their leadership on them,” said Iowa Biodiesel Board Executive Director Grant Kimberley. “Extending and reforming the tax credit will help realign it to work as Congress intended, supporting American jobs and products, while reducing reliance on other countries for our vital fuel supply.”
Reforming the biodiesel tax credit to a producers’ credit is estimated by LMC International to support nearly 82,000 U.S. jobs and $14.7 billion in economic activity.