Spending Bills Sent to Senate ... Included in the Deal Is a Year-End Compromise on Tax Extenders

December 18, 2019

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by Kelsey Tamborrino (Politico's Morning Energy) ON TO THE SENATE: The House passed the $1.4 trillion spending deal on Tuesday that would give federal agencies $49 billion in extra cash this fiscal year and avert a government shutdown ahead of the holidays. The chamber advanced the first funding bundle, H.R. 1865 (116), that includes the Energy-Water and Interior-Environment measures by a 297-120 vote, POLITICO's Caitlin Emma reports. The second package, H.R. 1158 (116), a four-bill national security minibus that includes billions of dollars for the military and DHS, passed 280-138.

Included in the deal is a year-end compromise on tax extenders struck by congressional tax writers and Treasury Secretary Steven Mnuchin in the wee hours Tuesday, POLITICO's Brian Faler reports. That package provided some wins for wind and biodiesel producers, but left out an expansion of a $7,500 tax credit for buying Teslas and other electric vehicles, and a hoped-for extension of the investment tax credit for the solar industry, as Pro's Eric Wolff reports. READ MORE

House passes spending bills, tax extenders legislation (Ethanol Producer Magazine)

Grassley: Approps package has tax extenders including biodiesel (The Fence Post)

Tax Extenders Also Help Ethanol and Advanced Biofuels (Energy.AgWired.com)

RFA Welcomes Deal to Extend Biofuel Tax Provisions (Renewable Fuels Association)

Iowa lawmakers pushing to bring back biodiesel tax credit (Radio Iowa)

Biodiesel tax credit needed to keep the Northeast warm: Facilities have closed because of inaction on the tax credit, and consumers count on policymakers for relief (Washington Times)

BIODIESEL TAX CREDIT ON PATH TO CERTAINTY (Brownfield Ag News)

House Passes Bill That Includes Alternative Fuel Tax Credits (NGTNews)

Renewable Energy Tax Breaks – Clean Energy Left Out, Biodiesel Back In (Our Daily Planet)

US Congress introduces multi-year extension of biodiesel tax incentive (Biofuels International)

Biodiesel tax extension is a win for the renewable fuels industry (AgDaily)

HOUSE REVIVES BIODIESEL TAX CREDIT TWO YEARS AFTER IT EXPIRED: THE APPROPRIATIONS BILL INCLUDES $1.5 BILLION IN DISASTER RELIEF MONEY FOR AGRICULTURE AND FUNDING FOR THE USDA FOR THE REST OF THE FISCAL YEAR. (Successful Farming)

ILLINOIS SOYBEAN GROWERS THANKS HOUSE FOR BIODIESEL SUPPORT (Illinois Soybean Association)

The Bioeconomy Christmas: Uncle Sam puts $12B+ for biomass-based diesel, action on biointermediates, cellulosics, and small refinery waivers into the stocking this year (Biofuels Digest)

Historic 5-year extension of biodiesel tax credit signed into law (Biodiesel Magazine)

Excerpt from Ethanol Producer Magazine: Documents published to the House website indicate that the tax extenders legislation includes provisions extending the biodiesel and renewable diesel producer tax credit, the second generation biofuel producer credit, the alternative fuel refueling property credit, the special allowance for second generation biofuel plant property, and the Section 45 and Section 48 tax credit for electricity produced from certain renewable resources.

The legislation aims to retroactively extend the biodiesel and renewable diesel tax credit through the end of 2022. The second generation biofuel producer credit, special allowance for second generation biofuel plant property are retroactively extended through Jan. 1, 2021. The Section 45 and Section 48 tax credits for electricity produced form certain renewable resources are also extended through Jan. 1, 2021. The alternative fuel refueling property credit is retroactively extended through Dec. 31, 2020.

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The National Biodiesel Board has issued a statement in support of the tax extenders legislation and thanking congressional champions for introducing a multi-year extension of the biodiesel tax incentive.

“Today’s announced deal provides the policy certainty that the biodiesel industry has been seeking to support investments and continued growth of production,” said Kurt Kovarik, vice president of federal affairs at the NBB. “NBB and its members are grateful that Congressional leaders are providing a positive signal before the year’s end.

"On behalf of NBB members, I’d like to thank Senator Chuck Grassley and Representative Abby Finkenauer as well as many other senators and representatives from both sides of the aisle for their strong and consistent championship of our industry,” Kovarik continued. “I’d also like to thank the producers, soybean farmers, heating oil distributors, blenders, and others who have worked tirelessly to advocate for extension of the biodiesel tax credit. We will continue to work with our champions to get this legislation across the finish line before the end of the year."

The Renewable Fuels Association is also speaking out to thank congressional leaders for renewing and extending important renewable fuel tax provisions.

“This is welcome news for the entire renewable fuels industry, and we thank Senator Grassley and the other leaders who made this important compromise possible,” said Geoff Cooper, president and CEO of the RFA. “While we continue to advocate for prospective, longer-term certainty for the second-generation biofuel producer credit and other relevant tax provisions, we are grateful this deal was reached to retroactively reinstate the lapsed second-generation biofuel provisions and extend them through 2020. We also appreciate the renewal and extension of the biodiesel and renewable diesel credit, as more than 2 billion pounds of corn distillers oil from ethanol plants are converted annually into the lowest-carbon source of biodiesel and renewable diesel available on the market today.

“The ethanol industry continues to support smart tax policy that enables long-term growth and investment in low-carbon renewable fuels, and today’s deal helps level the playing field against a fossil fuels industry that has reaped billions upon billions in tax incentives, subsidies, and write-offs,” Cooper continued. “We urge Congress and President Trump to move swiftly to pass and enact these important provisions that have languished for years.” READ MORE