Grassley: Approps package has tax extenders including biodiesel | TSLN.com

Grassley: Approps package has tax extenders including biodiesel

Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said today that the fiscal year 2020 appropriations package includes a deal reached by lawmakers regarding temporary tax code provisions also known as “extenders” including the biodiesel tax credit.

“After years of uncertainty for many Americans, we’ve finally come to an agreement on the future of these temporary tax policies,” Grassley said. “Many people in my state – farmers and processors alike – can breathe a sigh of relief that Congress will extend the biodiesel tax credit retroactively and through 2022. That industry employs more than 60,000 Americans, including thousands of Iowans. This extension provides important, longer-term stability for them and their communities. As chairman of the Finance Committee, I led the effort to get this top priority done.

“We are also extending tax relief needed to help rebuild in areas where natural disasters have devastated homes and businesses. This will help people in Iowa who saw historic, damaging floods in 2019 as well as Californians and others who’ve endured some of the biggest wildfires in recent history.

“We found a path to extend a small but significant set of policies by negotiating through midnight last night. This may not be the package I’d have pushed for on my own, but it’s a reasonable way forward that provides certainty where before there was only anxiety for many Americans.”

“We are also extending tax relief needed to help rebuild in areas where natural disasters have devastated homes and businesses. This will help people in Iowa who saw historic, damaging floods in 2019 as well as Californians and others who’ve endured some of the biggest wildfires in recent history.Chairman Chuck Grassley

The package includes the extensions of the following policies:

▪ Multi-year extension of the Biodiesel Tax Credit through 2022;

▪ Multi-year extension of the Short-line Railroad Tax Credit through 2022;

▪ Extension of disaster tax relief;

▪ Single-year extension of the Wind Energy Production Tax Credit;

▪ Resolution of tax-exempt organization parking tax; and

▪ Clarification of the tax benefits for rural electric cooperatives (RURAL Act).

The biodiesel tax credit 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, lobbyists said.

National Biodiesel Board Vice President of Federal Affairs Kurt Kovarik said, “Today’s announced deal provides the policy certainty that the biodiesel industry has been seeking to support investments and continued growth of production. NBB and its members are grateful that congressional leaders are providing a positive signal before the year’s end.” Kovarik credited Grassley and Rep. Abby Finkenauer, D-Iowa, with the provision.

Renewable Fuels Association President and CEO Geof Cooper said, “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.”

Rob Shaffer, director and chair of the American Soybean Association’s Biodiesel and Infrastructure Committee, said, “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.”

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, ASA noted, adding that the biodiesel tax incentive lapsed in December 2017, and the industry has faced nearly two years of uncertainty.

–The Hagstrom Report


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