Noem Introduces Biodiesel Tax Credit Extension
Rep. Kristi Noem today introduced the Biodiesel Tax Incentive Reform and Extension Act of 2016. This legislation would extend the $1-per-gallon tax credit for biodiesel through the end of 2019 and reform the credit so it is only used for fuel produced in the U.S.
“South Dakota can play a meaningful role in fueling our future,” said Noem. “Increased energy independence is essential to strengthening both economic opportunities and our long-term national security needs. By continuing our commitment to renewable fuels like biodiesel, we can reduce our reliance on foreign fuels from volatile areas of the world and put that energy back into our own economy.”
“The South Dakota Soybean Association applauds Representative Noem for her leadership on introducing this significant legislation,” said Jerry Schmitz, farmer from Vermillion and president of the South Dakota Soybean Association. “Shifting from a blender’s credit to a producer’s credit will eliminate the ability of foreign producers to claim the biodiesel credit, thus maximizing the added value of domestic production, U.S. jobs, and the economic impact for U.S. soybean farmers and our rural communities.”
Rep. Noem introduced similar legislation in 2015, and an extension of the credit was included in a year-end tax deal (more information).