The biodiesel tax incentive, dormant since it was last approved retroactively in 2018, is showing signs of life as Congress rushes toward and end-of-year funding bill.
Two Iowa Congresswomen, Cindy Axne (D-Iowa) and Abby Finkenauer (D-Iowa) introduced amendments to the spending bills Monday to reinstate the dollar-per-gallon tax credit on biodiesel sales.
“As the Congress considers bills this week to extend and adjust tax provisions, we are determined to fight for the investments that will support our farmers, rural communities, and good-paying green jobs,” said Rep. Axne. “At a time when Iowa farmers are facing hardship, Congress cannot ignore the importance of including these critical provisions.”
Senator John Hoeven (R-ND) told the DC Signal to Noise Podcast that odds are high the provision will be included in the so-called mini-omnibus bills.
“I’m hopeful that if we get it worked out, that it would be attached to one of those [appropriations bills] that we would get passed by the end of the week, House and Senate,” Hoeven said. “That would extend the biodiesel incentive, and I think it would include 2020, if we get it worked out the way the negotiations are going now. But it's not a done deal.”
Hoeven said the legislation would also retroactively apply the tax credit to years 2018 and 2019. He said an agreement to extend the tax incentive could be reached as early as Monday evening.