Senator Grassley Co-Sponsors $1 Per Gallon Biodiesel Producers Tax Credit Bill

Iowa Senator Chuck Grassley (R-IA) and Maria Cantwell (D-WA), along with 12 other co-sponsors, introduced a bill on Wednesday of last week that would modify the $1.00 per gallon biodiesel blenders’ tax credit to a producers’ credit and extend it for three years.

PMAA is concerned with limited access to supply, blending logistics in the tax and dyed system and concerns that the credit would be passed on to marketers if moved to a production credit. PMAA will fight this, particularly on behalf of heating oil dealers and their consumers who almost certainly will experience an increase in the price of heating oil if the bill passes.

In December 2015, Congress passed a tax extenders package that extended over 50 expired tax incentives through 2016 which includes the $1 per-gallon biodiesel blender’s tax credit and a 30 percent investment tax credit for alternative fuel pumps. However, Congress failed to address around three dozen expiring tax breaks, including the $1 per gallon biodiesel blenders’ tax credit that expired on December 31, 2016.