Biodiesel tax credit bill introduced to US Senate

A new biodiesel tax credit bill has been introduced to the US Senate. The bill would extend the clean-fuel tax credit incentive for US producers of bio-fuels by three years.

Supported by 16 senators, the bill’s lead sponsor is Iowa senator Chuck Grassley. Iowa is the US' biggest bio-diesel producer, and the industry supports around 4,000 jobs in the state, generating more than $300 million in revenue.

Farmers would likely be the biggest beneficiaries of the new legislation. Grassley told KCRG-TV9: "This bill would re-institute the tax credit for bio-diesel because it's so important for the economy and jobs in Iowa, particularly to agriculture," Grassley said.

A key feature of the bill is a switch in tax incentives from a blender’s credit to a producer’s one. This would protect the US biodiesel industry, preventing foreign producers accessing the US incentive while also encouraging US blenders to look for locally produced options.

Year on year, the first quarter of 2017 saw 10% more biodiesel imports than in 2016.