Senators Chuck Grassley and Joni Ernst of Iowa, along with a bipartisan group of 14 other senators, introduced a bill that would be designed to reform the biodiesel tax credit and extend the new policy for three years. Grassley and Washington Democrat Maria Cantwell are the chief authors of the American Renewable Fuel and Job Creation Act of 2017. The act would extend the biodiesel tax credit for the next three years and reforms the incentive by transferring the credit from the blenders to the producers of biofuels. The switch would ensure that the tax credit would incentivize domestic production and taxpayers wouldn’t be subsidizing imported fuel. Biofuel imports have increased from 510 million gallons in 2014 to approximately one billion gallons in 2016. Foreign biodiesel can benefit from the existing tax credit as well as foreign subsidies, making it much harder for homegrown biodiesel to compete. Grassley says, “U.S. tax policy should support U.S. products and jobs.” Ernst added, “I’m proud to support his legislation with Senator Grassley, which will ensure that we’re not inadvertently supporting foreign-produced biodiesel.”
From the National Association of Farm Broadcasting news service.
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