Iowa Senator Chuck Grassley Secures Biodiesel And Cellulosic Ethanol Tax Credits In Bill
In Washington, Iowa Senator Chuck Grassley secured the inclusion of tax incentives for wind energy, biodiesel, and cellulosic ethanol in the bipartisan tax extenders bill the Finance Committee debated on July 21.
Under the provision, facilities producing cellulosic biofuels can claim a $1.01 per gallon production tax credit on fuel produced before the end of 2014. The bill would extend this production tax credit for two additional years, for cellulosic biofuels produced through 2016.
The bill extends, for two years through 2016, the $1.00 per gallon tax credit for biodiesel, as well as the small agri-biodiesel producer credit of ten cents per gallon as well as, through 2016, the $1.00 per gallon tax credit for diesel fuel created from biomass.