In Iowa, lawmakers in the U.S. House and Senate introduced updated legislation this week to reinstate the biodiesel tax credit through 2016 and reform it to more directly benefit the domestic biodiesel industry. The legislation would turn it from a blender’s credit to a producer’s credit starting next year.
The Senate version was introduced by Senators Charles Grassley, R-Iowa, and Maria Cantwell, D-Wash. Lawmakers from both parties are currently negotiating the parameters of a tax extenders package for this and tax provisions. The legislation introduced today also includes a critical technical update, which would ensure that biodiesel used in off-road applications, such as fuel for agricultural use and Bioheat, will not incur excise tax.