Yesterday, Congressional leaders renewed and extended important renewable fuel tax provisions in their tax extenders agreement. 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.
The American Soybean Association thanks Congress and soybean industry champions for all of their efforts that have resulted in the introduction of a tax package that includes a multiyear biodiesel tax incentive extension that could help bring a measure of certainty soy growers have sought for over two years.
If passed, the credit would be extended at $1 per-gallon for five years covering 2018-22, retroactive to Dec. 31, 2017, through Dec. 31, 2022. The biodiesel tax incentive lapsed in December 2017, and the industry has faced nearly two years of uncertainty. ASA has worked closely with the National Biodiesel Board to advocate for a multiyear extension of the biodiesel tax credit before the end of 2019.
“Soy growers have faced several obstacles over the past two years-a down farm economy, a trade war, lapsed tax credits, and biodiesel plants closing across the country,” said Rob Shaffer, ASA director and chair of the organization’s Biodiesel and Infrastructure Committee, who also serves on NBB. “ASA is grateful to Congress for its support of the tax credit-which will help expand markets for soybean growers during an unsteady time. And I appreciate each of the soy growers and biodiesel industry partners who took time out of their fields to advocate passing this incentive before the end of the year.”
Renewable Fuels Association President and CEO Geoff Cooper said, “This is welcome news for the entire renewable fuels industry, and we thank Senator Grassley, Speaker Pelosi, and other congressional leadership who made this important compromise possible. 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 ethanol industry continues to support smart tax policy that enables long-term growth and investment in low-carbon renewable fuels, and today’s deal helps level the playing field against a fossil fuels industry that has reaped billions upon billions in tax incentives, subsidies, and write-offs. We urge Congress and President Trump to move swiftly to pass and enact these important provisions that have languished for years.”
