AGRIBUSINESS: Senators Push For Domestic Biodiesel
Iowa Senator Chuck Grassley, along with Washington Senator Maria Cantwell, has introduced bipartisan legislation to reinstate a tax incentive for domestic biodiesel production.
The bill both reforms and extends the dollar-per-gallon tax credit for biodiesel producers through 2017, which Congress has allowed to expire three times since 2009. The credit fully lapsed at the end of 2013.
Both Senators say industry growth stopped after Congress let the credit expire in 2012, and production remained flat at just over one billion gallons, but when the credit was reinstated in 2013, the U.S. biodiesel industry produced just under two billion gallons.
In the new bill, the dollar-per-gallon tax credit increases by ten cents on the first 15 million gallons of biodiesel from small producers with annual output lower than 60 million gallons.