Iowa Biodiesel Board Applauds President Trump for Signing Biodiesel Tax Credit Provisions into Law

(ANKENY, Iowa) –– The Iowa Biodiesel Board today thanked President Trump for the signing of legislation that clarifies and improves the federal biomass-based diesel tax incentive, calling it a strong signal of support for American energy production and rural economic growth. It passed in the “One Big Beautiful Bill Act.”

Grant Kimberley, executive director of the Iowa Biodiesel Board, issued the following statement:

“We commend President Trump for recognizing the critical role biodiesel can play in building next-generation energy infrastructure and driving a new industrial revolution rooted in American innovation. This extension sends a clear signal of stability to the marketplace and reinforces our nation’s commitment to strengthening domestic energy capacity.

“The revival of the Small Agri-Biodiesel Producer Credit through 2026—and increasing it to 20 cents-per-gallon—is a vital lifeline to small independent producers like those in Iowa. We thank Senator Chuck Grassley (R-IA) for championing the inclusion of that provision.

“The ability for producers to transfer the credit, the appropriate prioritization of North American feedstocks, and the removal of arbitrary indirect land use change penalties all bode well for Iowa’s biodiesel industry and soybean farmers. For producers who have been idled or running at reduced capacity since the start of the year, this is a breath of relief and welcome signal for a bright future.”

Because many changes to the §45Z Clean Fuel Production Credit become effective in 2026, IBB urged prompt, clear rules and guidance from the U.S. Treasury implementing the tax credit both for 2025 and beyond.

Kimberley reiterated his thanks to Iowa’s entire congressional delegation—Senators Grassley and Joni Ernst, and Representatives Randy Feenstra, Mariannette Miller-Meeks, Ashley Hinson and Zach Nunn—for their leadership in making this possible.

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Jenna Rose, IBB