Agreed-Upon Tax Package Includes Biodiesel, Cellulosic Incentives

Source: By Rachel Gantz, OPIS • Posted: Thursday, December 17, 2015

Congressional lawmakers late Tuesday evening reached an agreement on a $1.1 trillion spending bill that funds the government until 2016 and also includes a tax extenders package, with a two-year extension of the biodiesel and cellulosic ethanol incentives.

According to the text of the tax extenders package, it retroactively extends the $1/gal biodiesel and renewable diesel tax incentive and the $1.01/gal cellulosic ethanol tax credit through the end of 2016. Both incentives expired at the end of 2014.

However, not included in the tax extenders package was a shift of the biodiesel tax credit from blenders to producers, something that had been included in the version of the package that was passed out of the Senate Finance Committee in July.

Some biodiesel advocates were concerned that imported biodiesel was also receiving the U.S. tax credit.

Lawmakers planned to review the language in the spending bill and tax extenders today, ahead of a vote scheduled for later this week.