Bipartisan Bill Would Extend Small Biodiesel Producer Credit

(NAFB.com) A bipartisan Senate bill would extend a tax credit for small biodiesel producers through 2029, providing additional certainty for plants and farmers who supply the industry. Senators Chuck Grassley of Iowa and Amy Klobuchar of Minnesota introduced the Small Agri-Biodiesel Producer Credit Extension Act. The credit is currently scheduled to expire at the end of 2026. Eligible small producers can receive a 20-cent-per-gallon credit on their first 15 million gallons of qualifying agri-biodiesel, provided their production capacity does not exceed 60 million gallons. Grassley said the credit can help small producers plan investments and maintain jobs in rural communities. Klobuchar said extending the credit would provide farmers and biodiesel producers with certainty while supporting domestic fuel production and commodity markets. The legislation is endorsed by Clean Fuels Alliance America and Western Iowa Energy. As an example, Grassley said biofuels support more than 31,000 jo