Home Indiana Agriculture News Bill to Extend Biodiesel Tax Credits Introduced in House

Bill to Extend Biodiesel Tax Credits Introduced in House

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Soybeans jumped 13 ¼ on the January contract Tuesday, in large part, because Representative Kevin Brady, a Texas Republican and chair of the House Ways and Means Committee, has introduced a bill to extend biodiesel tax credits. The legislation would make technical corrections to the Tax Cuts and Jobs Act and extend several expired tax credits, including the biodiesel and renewable diesel tax incentive.

The National Biodiesel Board applauded the proposal that would provide a multi-year extension and would keep the credit at its current rate of $1.00 per gallon for 2018 through 2021 but gradually reduce it to $0.33 per gallon by 2024 and then allow it to expire. NBB says that “too often, the credit has been allowed to lapse and then reinstated retroactively, which does not provide the certainty businesses need to plan, invest, and create jobs.” Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, NBB says biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines without modification.

Source: NAFB News Service