The deal reached by congressional leaders Tuesday for renewing and extending important renewable fuel tax provisions helps the ethanol industry as well as biodiesel producers.
Specifically, the amendment would retroactively reinstate the second-generation biofuel producer credit, the special allowance for second-generation biofuel plant property and the alternative fuel refueling property credit for 2018 and 2019 and extend them through 2020. In addition, the biodiesel tax credit was reinstated for 2018 and 2019 and extended through 2022.
Renewable Fuels Association President and CEO Geoff Cooper says this is welcome news for the entire renewable fuels industry. “While we continue to advocate for prospective, longer-term certainty for the second-generation biofuel producer credit and other relevant tax provisions, we are grateful this deal was reached to retroactively reinstate the lapsed second-generation biofuel provisions and extend them through 2020. We also appreciate the renewal and extension of the biodiesel and renewable diesel credit, as more than 2 billion pounds of corn distillers oil from ethanol plants are converted annually into the lowest-carbon source of biodiesel and renewable diesel available on the market today.”
The extensions are part of a $1.2 trillion spending package passed by the House yesterday.