A bipartisan proposal in the U.S. Senate would extend a tax credit for small biodiesel producers through 2029, providing continued support for companies using domestic agricultural feedstocks.
Sens. Chuck Grassley, R-Iowa, and Amy Klobuchar, D-Minn., introduced legislation to extend the Small Agri-Biodiesel Producer Credit, which is scheduled to expire Dec. 31.
The credit provides eligible producers 20 cents per gallon on the first 15 million gallons of biodiesel they produce annually. Qualifying companies must have annual production of no more than 60 million gallons and use domestic agricultural feedstocks.
Clean Fuels Alliance America supports the proposed extension. The organization says small biodiesel producers support rural employment and domestic energy production while supplying lower-cost renewable fuel.
The legislation would maintain the incentive for three additional years. Without congressional action, the credit will expire at the end of this year.