Clean Fuels Applauds Effort to Extend Biodiesel Producer Credit

U.S. Senators Chuck Grassley (R-IA) and Amy Klobuchar (D-MN) just teamed up on a new bipartisan bill to keep the Small Agri-Biodiesel Producer Credit going through 2029. Without this extension, the tax relief is set to expire on December 31.

How the credit works:

• Who qualifies: American companies producing up to 60 million gallons of biodiesel annually from domestic farm crops.
• The incentive: A $0.20 per gallon income tax credit on their first 15 million gallons of production.

Why it matters: Small-scale biodiesel makers are punching above their weight when it comes to keeping energy costs down and fuel moving. As Kurt Kovarik, Vice President of Federal Affairs, pointed out, these local producers are pumping money straight into rural towns, protecting local jobs, and running at full capacity to supply clean, affordable fuel when the economy needs it most.