IRFA to state legislators: Give biodiesel a fighting chance by passing bills to extend, strengthen state tax credit

The Iowa Renewable Fuels Association is asking stakeholders to tell their state legislators they support HF 2071 and SF 2275, two bills that would extend and strengthen Iowa’s biodiesel production tax credit.

The legislation would expand the production tax credit from 4 cents per gallon (cpg) to 5 cpg and extend the expiration from the end of 2027 through 2030.

IRFA is asking constituents to tell their leadership to move both bills forward before the session runs out.

Iowa biodiesel production dropped 25 percent in the past year alone.

“Federal policy uncertainty is still being worked out, but Iowa biodiesel plants can’t wait,” IRFA stated. “This legislation is not a budget buster, but a bridge to stability. HF 2071 and SF 2275 would extend and strengthen Iowa’s biodiesel production tax credit, protecting over $520 million in gross domestic product, eight in-state plants, and thousands of jobs.”

The association said Iowa farmers need this demand.

“Biodiesel is one of the strongest demand drivers for Iowa soybeans,” IRFA stated. “Three plants have already closed, leaving us with just eight left. That means less demand for locally grown soybeans and lower farm income.”

Iowa is a biodiesel production leader, but without this legislation, that might not last long, IRFA stated.

“While we sit on our hands, neighboring states are increasing their support for biodiesel, attempting to pull production away from Iowa,” the organization said, noting that Minnesota has a B20 mandate, Illinois exempts higher biodiesel blends from sales tax, and Missouri offers a biodiesel production tax credit.

“Contact your state legislator today,” IRFA stated. “A few minutes of your time could protect thousands of rural Iowa jobs and a critical market for soybean farmers.”