H.R. 5240 Introduced to Extend the Biodiesel Tax Credit
In labeling renewable fuel sources such as biodiesel "critical" to the nation's energy future, American Farm Bureau President Ziggy Duvall is encouraging lawmakers to act on the Biodiesel Tax Incentive Reform and Extension Act of 2016 (H.R. 5240). The bill, introduced on May 13, 2016, would amend the Internal Revenue Code of 1986 to modify the incentives for biodiesel, and grant an extension of the biodiesel tax credit set to expire at the end of this year.
H.R. 5240 would specifically extend the current $1-per-gallon tax credit for biodiesel and renewable diesel. It would also change the current blender's credit to a producer's credit for domestic production, a change which Duvall says "will support domestic production and ensure that economic benefits will pass through to our nation's soybean, canola and livestock producers."
The bill has 6 Republican and 6 Democratic co-sponsors. It was referred to the House Ways and Means Committee on May 13, 2016.
This article was written by Lauren Potocsky, a summer associate at Varnum in 2016. Lauren is currently a student at Wayne State University Law School.