Iowa extends biodiesel tax credit
May 22, 2014
by World Grain Staff
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JEFFERSON CITY, MISSOURI, U.S. — Iowa Governor Terry Branstad on May 21 signed into law an extension of the state’s biodiesel producer incentive.
“Iowa is a biofuels leader in this country and having states step to the plate with legislation supporting America’s Advanced Biofuel, biodiesel, is a win for our industry,” said Steven J. Levy, chairman of the National Biodiesel Board (NBB). “Our champions in Iowa have shown that hard work to grow this still-young industry pays off.”
The legislation is an extension of the current biodiesel producer incentive that is structured as a 2-cent-per-gallon refundable credit for the first 25 million gallons produced at any single plant in the state. The incentive was set to expire at the end of this year but the extension now moves that through 2017.
“Built on strong federal and state policy support, the biodiesel industry produced nearly 1.8 billion gallons last year,” said Levy. “With record volumes of advanced biofuels being produced, now is not the time to back away from those policies that have proven to be successful in bringing fuel diversity to the marketplace.”