Sens. Chuck Grassley (R-Iowa) and Maria Cantwell (D-Wash.) today introduced legislation to support the biodiesel industry, continue to broaden America’s energy independence. The bipartisan Biodiesel Tax Credit Extension Act of 2021 would extend the current federal biodiesel tax credit program through 2025.
“The biodiesel tax credit has proven to work by reducing our dependence on foreign oil and lowering greenhouse gas emissions. Many Iowans, farmers and processors alike, work hard to provide clean, renewable energy. The biodiesel industry employs more than 60,000 Americans, including thousands of Iowans,” Grassley said. “I’m glad to author this legislation which would extend the biodiesel tax credit through 2025. This extension would provide important, longer-term stability for them and their communities.”
Joining Grassley and Cantwell as original cosponsors are Sens. Joni Ernst (R-Iowa), Amy Klobuchar (D-Minn.), Roger Marshall (R-Kan.), Jeanne Shaheen (D-N.H.), Deb Fischer (R-Neb.), Mike Rounds (R-S.D.), Patty Murray (D-Wash.), Tina Smith (D-Minn.) and Mazie Hirono (D-Hawaii).
As former chairman of the Senate Finance Committee, Grassley led the effort to include several temporary tax policies in the 2019 year-end spending package including the multi-year extension of the Biodiesel Tax Credit through 2022.
In 2005, Congress created the biodiesel tax incentive. As a result of this incentive, the Renewable Fuel Standard, and consumer interest, biodiesel is providing significant benefits to the nation. Domestic biodiesel production supports tens of thousands of jobs. Replacing traditional diesel with biodiesel reduces emissions and creates cleaner air. Homegrown biodiesel improves U.S. energy security by diversifying transportation fuels and reducing dependence on foreign oil. Biodiesel itself is a diverse fuel that can be produced from a wide array of resources such as recycled cooking oil, soybean and other plant oils and animal fats.
“Biodiesel and renewable diesel production is poised for growth, ready today to meet the nation’s needs for clean fuel while creating jobs and economic opportunities for many Midwest states,” Kurt Kovarik, National Biodiesel Board Vice President of Federal Affairs said. “These better, cleaner fuels support 13% of the value of every bushel of U.S. soybeans and about $17 billion in economic activity across the country. NBB’s members sincerely appreciate Senators Grassley and Cantwell for leading on this important clean energy policy.”
“Extending the biodiesel blenders tax credit is critical to providing market stability during this turbulent time. IRFA thanks Senator Grassley for his leadership and long track record supporting Iowa biofuels and farmers. Sen. Grassley’s relentless efforts to ensure Iowa biofuel producers have the opportunity to compete in domestic fuel markets has had a huge positive impact on Iowa’s economy, U.S. national security, and the world’s environment,” Monte Shaw, Executive Director of Iowa Renewable Fuels Association said.
“We are encouraged to see Members of Congress, with Sen. Grassley’s leadership and guidance, recognize the valuable role biodiesel can play in our nation’s energy supply. Iowa has much to gain from a thriving biofuels industry, as it has become inextricably linked to our economic growth and the viability of our many farms. We are grateful to Sen. Grassley for his sustained leadership in advocating for stability in this vital biodiesel tax credit,” Grant Kimberly, Iowa Biodiesel Board Executive Director said.
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