IBB News Releases
- Iowa Biodiesel Supporters Climb Capitol Hill to Advocate Tax Incentive Reform
Iowa Biodiesel Supporters Climb Capitol Hill to Advocate Tax Incentive Reform
June 21, 2017
WASHINGTON, D.C. – Yesterday members of the Iowa Renewable Fuels Association (IRFA) and Iowa Biodiesel Board (IBB) joined forces on Capitol Hill to urge Iowa’s Congressional delegation to keep fighting for a reformed biodiesel tax incentive. The changes would save U.S. taxpayers money while encouraging domestic jobs and energy security.
Bills have been introduced in both the U.S. House and Senate to reinstate the biodiesel tax credit, and reform it from a blenders credit to a producers credit. This would fix a loophole where foreign biodiesel producers can take advantage of the credit at the expense of U.S. taxpayers for merely blending their biodiesel with petroleum in the U.S.
“The biodiesel use has skyrocketed since the tax credit was first implemented, from 100 million gallons in 2005 to nearly 2.9 billion gallons at the end of last year,” said IRFA Executive Director Monte Shaw. “Unfortunately Congress has allowed this successful tax incentive to expire. Yesterday we thanked Iowa’s delegation for their strong support in reinstating and reforming the biodiesel tax credit in order to boost domestic energy and quality jobs.”
The group also asked Iowa’s representatives to stand strong on the Renewable Fuel Standard (RFS) and oppose any efforts to undermine the statute.
“Both the tax incentive and RFS are examples of successful bipartisan policies that make sense, and we’re grateful to our state’s delegation for their leadership on them,” said IBB Executive Director Grant Kimberley. “Extending and reforming the tax credit will help realign it to work as Congress intended, supporting American jobs and products, while reducing reliance on other countries for our vital fuel supply.”
Reforming the biodiesel tax credit to a producers’ credit is estimated by LMC International to support nearly 82,000 U.S. jobs and $14.7 billion in economic activity.
The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 43 ethanol refineries capable of producing 4 billion gallons annually – including nearly 55 million gallons of annual cellulosic ethanol production capacity – and 12 biodiesel facilities with the capacity to produce over 350 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.
The Iowa Biodiesel Board (www.iowabiodiesel.org) is a state trade association representing the biodiesel industry. Biodiesel – made from a variety of resources including soybean oil, recycled cooking oil and animal fats – is the first EPA-designated Advanced Biofuel to reach commercial-scale production nationwide.