IRFA Thanks Bipartisan Senate Effort to Extend Small Biodiesel Producer Credit

Proposed extension would provide certainty for Iowa's small biodiesel producers through 2029.

DES MOINES, Iowa - The Iowa Renewable Fuels Association (IRFA) is thanking Sens. Chuck Grassley (R-Iowa) and Amy Klobuchar (D-Minn.) for introducing bipartisan legislation to extend the Small Agri-Biodiesel Producer Credit through 2029.

The credit, which is set to expire Dec. 31, 2026, applies to the first 15 million gallons of annual production for small biodiesel producers with a capacity of 60 million gallons or less. It provides a $0.20-per-gallon tax credit for producers using crop oils and animal fats.

"Small biodiesel producers are an important part of Iowa's rural economy, and they need certainty to keep investing and producing," said Monte Shaw, executive director of the Iowa Renewable Fuels Association. "This extension gives Iowa producers the runway they need to keep turning Iowa-grown feedstocks into homegrown fuel, supporting farmers and strengthening rural communities."

The extension would provide additional certainty for Iowa's small biodiesel producers as the industry transitions to the §45Z Clean Fuels Production Credit.

IRFA will continue working with Iowa's congressional delegation and federal policymakers on policies that support Iowa's renewable fuels producers, farmers and rural communities.

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The Iowa Renewable Fuels Association represents the state's liquid renewable fuels industry and works to foster its growth. Iowa is the nation's leader in renewable fuels production with 43 ethanol refineries capable of producing over 4.5 billion gallons annually - including 34 million gallons of annual cellulosic ethanol production capacity - and 11 biodiesel facilities with the capacity to produce nearly 400 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org .