Rep. Kristi Noem (R-SD) recently introduced the American Renewable Fuel and Job Creation Act, which would extend the
$1-per-gallon tax credit to biodiesel through the end of 2020.
The bill, cosponsored by Reps. Dave Loebsack (D-IA) and Bill Pascrell (D-NJ), would also ensure that credit would only be applied to fuel produced in the United States.
“Turning corn and soybeans into fuel not only opens the door for better ag prices and greater market stability, but also offers broader benefits for our national economy and security,” Noem said. “Continuing this innovative technology is essential. This legislation would give more certainty regarding biodiesel’s availability while ensuring the incentive is encouraging American biodiesel production, not the importation of foreign biodiesel – a move consistent with our goal of achieving American energy independence.”
The bill is backed by the National Biodiesel Board, which welcomes working with Congress to ensure the bill’s passage, and the South Dakota Soybean Association, which says passage of the bill would ensure U.S. industry is on a level playing field with foreign importers.
In 2015, Noem proposed the Protecting Americans from Tax Hikes Act. One of the temporary extensions in the bill extended the biodiesel tax credit through Dec. 31, 2016.