U.S. Representatives Cindy Axne (D-Iowa) and Mike Kelly (R-PA.) today introduced legislation that would extend the $1.00 per gallon biodiesel blenders’ tax credit for three years through 2025. Companion legislation to extend the biodiesel tax credit also was introduced in the U.S. Senate by Sens. Maria Cantwell (D-WA) and Chuck Grassley (R-IA).
The “Biodiesel Tax Credit Extension Act of 2021” would amend the Internal Revenue Code and apply to fuel sold or used after Dec. 31, 2022.
In previous years, Congress has tended to address the tax credit close to its expiration or on some occasions retroactively renewing it after it has already lapsed. President Trump retroactively renewed the $1 per-gallon biodiesel blenders tax credit in December 2019 and extended it through 2022.
The “Biodiesel Tax Credit Extension Act of 2021” represents an important marker as Congress currently works on an infrastructure bill that aims to include a number of “green energy” tax provisions. It is possible that an extension of the biodiesel tax credit could be incorporated into that legislation.
NATSO Vice President of Government Affairs David Fialkov said, “The truckstop and travel center industry applauds Representatives Cindy Axne (D-IA) and Mike Kelly (R-PA.) for their leadership in extending the biodiesel tax credit and their commitment to this important legislation. The biodiesel tax credit has proven to be one of the most effective policy mechanisms for lowering the carbon intensity of transportation fuel in the United States. Every gallon of biodiesel that displaces traditional diesel represents at least a 50 percent reduction in lifecycle greenhouse gas emissions, while also lowering prices at the pump for consumers.”
Representatives Axne and Kelly were joined by 24 bipartisan original cosponsors: Reps. Bacon (NE-02), Bost (IL-12), Bustos (IL-17), Cicilline (RI-01), Courtney (CT-02), Craig (MN-02), DeLauro (CT-03), Feenstra (IA-04), Fischbach (MN-07), Guest (MS-03), Hagedorn (MN-01), Hern (OK-01), Hinson (IA-03), Himes (CT-04), Johnson (SD-AL), Kinzinger (IL-16), LaHood (IL-18), Larson (CT-01), Miller-Meeks (IA-02), Marie Newman (IL-03), Pence (IN-06), Sewell (AL-07), Wagner (MO-02), and Walorski (IN-02).
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