Grassley, Cantwell and 12 others introduce biodiesel tax credit reform and extension package

In Washington, Sen. Chuck Grassley of Iowa, Sen. Maria Cantwell of Washington and 12 fellow senators introduced bipartisan legislation to reform the biodiesel tax credit and extend the new policy for three years.  The reforms are similar to the provisions that Grassley and Cantwell have long proposed and that passed out of the Finance Committee last year. The bill would make the tax credit available for the domestic production of biodiesel, rather than the current policy of a mixture credit available to the blender of the fuel.

The change would offer numerous benefits, Grassley and Cantwell said.  The blenders credit can be difficult to administer, because the blending of the fuel can occur at many different stages of the fuel distribution.  This can make it difficult to ensure that only fuel that qualifies for the credit claims the incentive.  It has been susceptible to abuse because of this.