A bipartisan proposal in the US Senate seeks to extend a tax credit for small biodiesel producers through 2029, continuing support for companies that use domestically sourced agricultural feedstocks, JC Post reported.
Republican Senator Chuck Grassley of Iowa and Democratic Senator Amy Klobuchar of Minnesota have introduced legislation to extend the Small Agri-Biodiesel Producer Credit, which is scheduled to expire on December 31.
Under the credit, eligible biodiesel producers receive 20 cents per gallon on the first 15 million gallons of biodiesel produced each year. To qualify, companies must have annual production capacity of no more than 60 million gallons and use domestic agricultural feedstocks.
The proposed legislation would extend the credit for three additional years. Without congressional action, the incentive will expire at the end of 2026.
Clean Fuels Alliance America has backed the proposed extension. The organisation said small biodiesel producers contribute to rural employment and domestic energy production while supplying renewable fuel at lower cost.
The proposed extension would maintain the tax incentive for small producers through 2029.
