Biodiesel Tax Credit Back In US Budget Deal

In Washington, the US Congress passed its budget deal, and among the items in the deal was a retroactive restoration of the $1 per gallon biodiesel tax credit for 2017. The bill did not include a provision for 2018 and future years.

The budget compromise had run into headwinds in the Senate, in the form of a voting delay imposed by Rand Paul of Kentucky, while opposition in the House from a group of Democrats and hardline conservatives had put the bill into some degree of jeopardy.Renewable Energy Group CEO Randy Howard said “We are pleased that Congress recognized the importance of biomass-based diesel and its place in the value chain and passed a retroactive extension of the biodiesel mixture excise tax credit for 2017. This credit will allow needed infrastructure investments to grow the production and distribution of these valuable renewable products. However, we are disappointed that despite strong bi-partisan support, Congress did not complete the job and continue the biodiesel tax credit into the future.”

Though frustrated with the partial outcome, we would like to thank all of our supporters and champions; a large group of members worked tirelessly on our behalf and we appreciate their efforts.  Specifically, we would like to thank Sen. Grassley, Sen. Cantwell and their allies for their unwavering support for our industry.

“We are pleased our supporters in Congress continue to recognize the value the biodiesel tax credit brings, like lower RIN costs, continued economic development, jobs, support of our nation’s farmers and a cleaner environment.  We will continue to work alongside our elected officials and the administration on a long-term extension of the biodiesel and renewable diesel tax incentive. Doing so is not only smart energy policy, it’s smart tax policy.”