Iowa biodiesel producers, soybean farmers welcome credit-extension legislation

Sens. Chuck Grassley, R-Iowa, and Amy Klobuchar, D-Minnesota, introduced bipartisan legislation (S. 5583) to extend 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 Sept. 29.

“Iowa is home to many small and independent biodiesel producers, and for these plants, the small agri-biodiesel producer credit has been a lifeline,” said Grant Kimberley, the executive director of the Iowa Biodiesel Board.

“It helps them weather tough markets, keep their doors open and keep people employed in rural communities across our state,” Kimberley added. “We’re grateful to Sen. Grassley, who has been a tireless champion for biodiesel for as long as there’s been an industry to champion.”

The credit’s value reaches well beyond the plant gate, Kimberley explained.

“When Iowa’s biodiesel producers are running strong, they’re buying soybean oil and other farm-grown feedstocks, which adds value to every bushel Iowa soybean farmers grow,” he said.

“Extending this credit gives small producers the certainty they need to keep investing, keep producing and keep delivering cleaner, more affordable fuel made right here at home,” Kimberley said.