Bill Introduced to Simplify and Extend Biodiesel Tax Incentive

Today, Senator Chuck Grassley of Iowa along with Democratic Senator Maria Cantwell from Washington introduced The Biodiesel Tax Incentive Reform and Extension Act of 2009, legislation to simplify and extend the tax incentive for domestic biodiesel production. Grassley, who is a Republican member of the Finance Committee wrote the original biodiesel tax incentive while serving as committee chairman in 2004.
“Domestic production and use of biodiesel is consistent with an energy policy that values the displacement of petroleum with low-carbon, renewable fuels. This legislation will provide certainty to biodiesel producers and improve the form and function of the biodiesel tax incentive. We strongly support this proposal and commend Senator Cantwell and Senator Grassley for introducing this forward thinking legislation,” said NBB CEO Joe Jobe. “This common sense proposal is consistent with an energy policy that values the use of domestically produced, low carbon renewable fuels to meet the nation’s energy needs. Our industry looks forward to working with Senator Cantwell and Senator Grassley to enact this important proposal.”
Today legislation would ameliorate the tax credit currently in place for blending biodiesel with petroleum diesel which expires at the end of this year, and extend it for five more years.
“America is trying to kick its addiction to foreign oil, and biodiesel is part of the cure,” Grassley said. “The more we can encourage domestic production and meet demand, the better off we’ll be economically, environmentally, and geopolitically. This legislation simplifies the tax credit for producers. It also gives investors predictability so they’ll be more likely to put their money into biodiesel production.” Grassley also said U.S. production of biodiesel has increased significantly in recent years, and the legislation will encourage that progress.
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