Washington, DC - The National Biodiesel Board (NBB) today thanked Sens. Joni Ernst (R-IA) and Chuck Grassley (R-IA) for encouraging Internal Revenue Service (IRS) Commissioner Charles Rettig to promptly process 2018-2019 claims for the biodiesel tax credit.
"With our strong support, Congress took action and renewed the tax incentive for five years in order to support this important industry and provide a positive market signal," the Senators write in a letter dated February 13, 2020.
"Timely payment of claims for 2018 and 2019 is necessary for the recovery of the entire biodiesel industry, including producers, blenders, and farmers."
In late December 2019, Congress retroactively reinstated the biodiesel tax incentive for 2018 and 2019 and extended it through 2022.
On January 15, 2020, the IRS issued guidance for biodiesel producers and blenders to claim payments for the retroactively reinstated credit.
The agency will accept claims for 2018 and 2019 credit until August 11, 2020.
Kurt Kovarik, NBB's VP of Federal Affairs, added, "On behalf of NBB's members and biodiesel producers across the United States, I thank Senators Ernst and Grassley for their constant and strong support of the biodiesel industry.
"The Senators stood with our industry to urge their colleagues to renew the credit, issued last-minute appeals to ensure its passage, and have now followed through to see that the credit provides a much-needed economic lifeline to biodiesel producers and farmers.
"We look forward to continuing to work with them as strong champions for the industry."
Dave Walton, owner of Walton Farms and Walton Farms Custom Ag, also said, "Renewal of the biodiesel tax incentive will help sustain and build an important market for Iowa's soybean growers, who faced a very tough season last year.
"We appreciate that Senators Ernst and Grassley stood with Iowa's farmers and biodiesel producers throughout the challenges."
Walton is also an executive director and treasurer of the Iowa Soybean Association and a member of NBB's governing board.
Tom Brooks, general manager of Western Dubuque Biodiesel, added, "Last year, several of Iowa's biofuel producers were forced to close their doors due to the lapse of the biodiesel tax credit and the EPA's efforts to undermine the Renewable Fuel Standard. Senators Ernst and Grassley have been vocal and effective champions for the industry on both issues."
Brooks is also a member of NBB's governing board.
A copy of the Senators' letter is available for download.
For more information, please contact Paul Winters at 202-737-8801 or pwinters@biodiesel.org