After nearly two years of uncertainty, congressional negotiators extend the biodiesel tax credit that lapsed at the end of 2017. The credit extends to $1 per-gallon for five years covering 2018-22, retroactive to Jan 1, 2018 through Dec. 31, 2022.
The American Soybean Association (ASA) and the National Biodiesel Board (NBB) worked closely to advocate for the reintroduction of the tax package before the end of the year. “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. Shaffer also serves on the National Biodiesel Board, alongside Donnell Rehegan, serving as the CEO of the NBB.
The last two years have brought obstacles to many farmers and biodiesel industry workers, including the closure of biodiesel plants across the country. With the support of congressional leaders on the tax credit incentive, soybean and biodiesel markets will expand. The “deal provides the policy certainty that the biodiesel industry has been seeking to support investments and continued growth of production,” said Rehagen.
Other key parts of the congressional negotiations include a tax credit put into effect through 2022 for short-line, extensions for tax breaks, and a one-year extension of wind power production which will provide relief to rural communities and electric co-ops.
More information on both tax bills and incentives can be found here.