Midwest ag, biofuel groups praise restoration of key tax provisions in Limit, Save, Grow Act
In late April the U.S. House of Representatives voted 217-215 to pass HR 2811, the Limit, Save, Grow Act of 2023—legislation raising the U.S. borrowing limit in conjunction with various spending cuts and other provisions.
Early drafts of the bill included eliminating several tax credits created or extended in the Inflation Reduction Act last year for biodiesel, cellulosic ethanol, other low-carbon fuels, sustainable aviation fuel (SAF), and carbon sequestration.
In the final version that passed the House, an amendment salvaged tax incentives for biodiesel and renewable diesel.
The bill, if signed into law, would, however, repeal some of the other renewable energy credits going forward, such as the new SAF and clean fuels production tax credits, but it would allow those who locked in binding contracts for, or made concrete investments in, SAF or other clean fuels before April 19 to still claim them.
Senate Majority Leader Chuck Schumer has declared the Limit, Save, Grow Act dead on arrival though.
Despite its unlikeliness, if the bill were to make it through the Senate as-is, President Joe Biden has said he would veto the legislation.
Nevertheless, agriculture and biofuel groups in Midwestern states like Iowa and Missouri are thankful that key biofuel incentives such as the biodiesel blenders tax credit were restored in the measure.
“Iowa Renewable Fuels Association members are appreciative for the outstanding leadership shown by the Iowa House delegation in defending Iowa farmers and biofuel producers during recent debt-ceiling negotiations,” said Monte Shaw, IRFA’s executive director. “They led a coalition of Midwest lawmakers in defending our agricultural economy and future opportunities for value-added ag processing. And we were most impressed that they were successful by being responsible, fact-based, evenhanded and straightforward—just like the people they represent. With thousands of jobs on the line, they did not blink.”
The Missouri Corn Growers Association and Missouri Soybean Association stated they were “thankful appropriate action was taken to reinstate provisions promoting the production and use of biofuels in the Show-Me State and across America, helping lower prices, and increasing America’s energy security.”
The Missouri groups specifically thanked U.S. Reps. Mark Alford and Jason Smith, both representing Missouri districts, “for standing up for Missouri corn and soybean farmers in the tense negotiations that took place Tuesday night. Undoubtedly, these efforts helped ensure important biofuel policies were protected. As the bill progresses, we look forward to working with Missouri’s congressional delegation to expand consumer access to homegrown biofuels and educating other policymakers on our industries’ positive economic impacts. Without a doubt, today’s local biorefineries are bolstering our nation’s domestic fuel supply, reducing greenhouse-gas emissions, and lowering fuel costs for American families.”