Senators Maria Cantwell (D-WA) and Charles Grassley (R-IA) have introduced legislation to reinstate the biodiesel tax credit. The “Biodiesel Tax Incentive Reform and Extension Act of 2014,” would extend the $1 per gallon tax credit for biodiesel producers through 2017.
Senator Cantwell said, “This legislation gives businesses the certainty they need to invest in biodiesel and the development of affordable, domestic alternatives to fossil fuels.”
The legislation also eliminates potential abuses and simplifies how the tax is administered. It restricts the credit to fuel producers and excludes fuel blenders from eligibility.It simplifies the definition of “biodiesel” to encourage production from any biomass-based feed stock or recycled oils and fats. Small producers with an annual production capacity of less than 60 million gallons would receive a credit of $1.10 per gallon for the first 15 million gallons produced.
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