On December 18, 2015, President Obama signed the omnibus spending bill, or Consolidated Appropriations Act, 2016, into law. The $1.1 trillion spending bill includes the retroactive extension of the $1 per gallon tax credit for biodiesel and renewable diesel blenders through December 31, 2016, while extending the second-generation biofuel production credit through January 1, 2017. In addition to extending tax credits for biofuels, the bill also funds a wide range of government programs through...
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On August 18, 2015, the Internal Revenue Service (IRS) released a notice containing tax code information for 2014 biodiesel tax credits. The focus of the notice is the treatment of credits under Internal Revenue Code Section 6426(c) and (d) that allow a biodiesel blender to claim a credit against tax liability. Generally, the tax liability is in the form of excise taxes imposed by Sections 4041 and 4081 and is reported on Form 720, Quarterly...
On July 29, 2015, a bill to amend the Internal Revenue Code of 1986 to provide credits for the production of renewable chemicals and investments in renewable chemical production facilities, and for other purposes (H.R. 3390) was introduced in the House. The bill would expand production and investment tax credits that are currently available to renewable energy producers to apply also to renewable chemical manufacturers. The program allows manufactures to choose either: (1) a 15...
Iowa Senate bill SF 350: the Renewable Chemical Production Tax Credit Program was introduced in March 2015, and is awaiting review in the Ways & Means Committee. If passed, the legislation will allow producers of renewable chemicals in Iowa to claim a five cent per pound tax credit, with a maximum credit of $1 million for businesses operating in Iowa for five years or less, and a maximum credit of $500,000 for businesses operating in...
December 18, 2014
Senate Passes Tax Extender Legislation
On December 16, 2014, the Senate followed the House of Representatives and passed tax extender legislation that is expected to be signed by the President. The final package that passed would retroactively extend incentives that expired on December 31, 2013, through the end of 2014. It does not extend the incentives through the end of 2015, as Senate Finance Committee Chair Ron Wyden (D-OR) and other leaders would have liked. The final tax extender package...
December 11, 2014
House Of Representatives Extends Bioenergy Tax Credits For 2014
On December 1, 2014, the U.S. House of Representatives passed H.R. 5771, the Tax Increase Prevention Act of 2014, more commonly referred to as the tax extender bill. This bill extends through 2014 the dollar-per-gallon biodiesel tax credit, as well as the biofuel production tax credit for cellulosic and algae-based biofuels and the special allowance for second generation biofuel plant property. While the Chair of the Senate Committee on Finance is reportedly still working to...
October 3, 2014
Bridge To A Clean Energy Future Act Of 2014 Introduced In The U.S. House Of Representativs
On September 19, 2014, Representatives Earl Blumenauer (D-OR) and Dave Loebsack (D-IA) introduced the Bridge to a Clean Energy Future Act of 2014 (H.R. 5559), which was referred to the House Committee on Ways and Means. The bill would extend clean energy tax incentives, including those benefiting the biofuel and bioenergy industries. Among the tax credits being extended are the second generation biofuel producer credit, the $1.00 per gallon tax credit for biodiesel and renewable...
September 26, 2014
House Democrats Introduce Energy Tax Extender Bill
On September 18, 2014, Representatives Earl Blumenauer (D-OR) and Dave Loebsack (D-IA), along with 16 other Members of Congress, introduced H.R. 5559, the Bridge to a Clean Energy Future Act of 2014. A copy of Representative Blumenauer's statement on the bill is available online. H.R. 5559 is the House counterpart to S. 2260, the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act. The package of tax extenders was approved by the Senate Finance Committee in...
On May 21, 2014, Iowa Governor Terry Branstad (R) signed into law Senate Bill 2344, legislation to help promote the biofuels industry in the State. A copy of the legislation is available online. It extends the biodiesel production tax credit that was scheduled to expire at the end of 2014, enhances Iowa's E-15 retailer tax credit, and adds biobutanol as a renewable fuel option. This law reinforces Iowa's ongoing support for the biofuels industry....
On May 15, 2014, the U.S. Senate failed to pass a procedural measure that would have allowed for that body to consider and vote on S. 2260, the "Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act," the package of tax extenders approved by the Senate Finance Committee in April. The EXPIRE Act includes extensions through December 31, 2015 (and retroactive to January 1, 2014), of the following key biofuels incentives that have expired: the Alternative...