Clean Fuels applauds proposal to extend small agri-biodiesel producer credit by 3 years

Clean Fuels Alliance America thanked Sens. Chuck Grassley and Amy Klobuchar for the bipartisan proposal to support small producers.

Sens. Chuck Grassley, R-Iowa, and Amy Klobuchar, D-Minnesota, introduced bipartisan legislation (S. 5583) Sept. 29 to extend availability of the small agri-biodiesel producer credit through 2029.

U.S. companies that produce up to 60 million gallons of biodiesel per year using domestic agricultural feedstocks can claim this income tax credit of 20 cents per gallon on the first 15 million gallons of production.

The credit will expire Dec. 31, 2026, unless Congress adopts the extension introduced today.

“Clean Fuels thanks Sens. Grassley and Klobuchar for proposing to extend the small agri-biodiesel producer credit and providing certainty for small producers in Iowa, Minnesota and across the country,” said Kurt Kovarik, the vice president of federal affairs for Clean Fuels.

“Small biodiesel producers are making an outsized contribution to America’s energy security right now, producing lower-cost, drop-in distillate fuel that’s needed to keep the economy moving,” Kovarik added.

“These companies are investing in rural communities, creating and preserving jobs and running full out to provide cleaner, better, more affordable fuel to meet today’s demand,” he said.