Rep. Kristi Noem (R-SD) today announced the introduction of the American Renewable Fuel and Job Creation Act.  The legislation would extend the $1-per-gallon tax credit for biodiesel through the end of 2020 and reform the credit so it is only used for fuel produced in the U.S.

“Turning corn and soybeans into fuel not only opens the door for better ag prices and greater market stability, but also offers broader benefits for our national economy and security. Continuing this innovative technology is essential,” said Noem.  “This legislation would give more certainty regarding biodiesel’s availability while ensuring the incentive is encouraging American biodiesel production, not the importation of foreign biodiesel – a move consistent with our goal of achieving American energy independence.”

“Biodiesel not only represents a cleaner burning alternative to conventional fuel, it also plays a crucial role in our nation’s energy independence,” said Jerry Schmitz, President of the South Dakota Soybean Association.  “By extending the biodiesel tax credit and changing the blender’s credit to a producer’s credit, we can level the playing field with foreign importers and ensure that tax dollars support American industries.”

“We are thrilled to see momentum building in both chambers of Congress for this important tax reform. It is long overdue to close this loophole and better align the incentive with Congress’ intent—to invest American taxpayer dollars to spur job creation here at home. We look forward to working with Congress to move this proposal forward,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board.

Noem was joined by Reps. Bill Pascrell (D-NJ) and Dave Loebsack (D-IA) as cosponsors.  Noem introduced similar legislation in the 114th Congress. A temporary extension of the credit was included in a 2015 year-end tax bill (more information).

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