IRFA thanks bipartisan Senate effort to extend small biodiesel producer credit

The Iowa Renewable Fuels Association thanked Sens. Chuck Grassley, R-Iowa, and Amy Klobuchar, D-Minnesota, for introducing bipartisan legislation to extend the small agri-biodiesel producer credit through 2029.

The credit, which is set to expire Dec. 31, 2026, applies to the first 15 million gallons of annual production for small biodiesel producers with a capacity of 60 million gallons or less.

It provides a 20-cent-per-gallon tax credit for producers using crop oils and animal fats.

“Small biodiesel producers are an important part of Iowa’s rural economy, and they need certainty to keep investing and producing,” said Monte Shaw, executive director of the Iowa Renewable Fuels Association.

“This extension gives Iowa producers the runway they need to keep turning Iowa-grown feedstocks into homegrown fuel, supporting farmers and strengthening rural communities,” he added.

The extension would provide additional certainty for Iowa’s small biodiesel producers as the industry transitions to the 45Z clean fuel production credit.

IRFA said it will continue working with Iowa’s congressional delegation and federal policymakers on policies that support Iowa’s renewable fuels producers, farmers and rural communities.