On Monday night, the House Ways and Means Committee released a proposal to extend the Federal Biodiesel Blender’s Tax Credit for the years 2018 – 2024. Under this proposal, a blender of biodiesel would be eligible for a tax credit in the amount of $1.00 per gallon of biodiesel for the years 2018-2021. The proposal also includes a phaseout, decreasing the amount of the credit to $0.75 for 2022, $0.50 for 2023 and $0.33 for 2024. The credit would terminate after 2024, without any option of renewal.
The proposal is part of a larger tax package, which includes several more provisions on other biofuel tax credits, retirement savings, and several other environmental provisions. The package is part of a bipartisan effort and expected to move quickly through the House.