Biodiesel has many benefits for Illinois constituents:
- The economic activity generated by the biodiesel industry provides $145 million of household income and $3.4 million of farm income, according to an ABF Economics study.
- A checkoff-funded study reveals biodiesel contributed to an $18.8 billion increase in soybean oil revenues between 2006 and 2014, increasing the price of soybeans by $0.63 per bushel.
- The Illinois biodiesel industry has grown from less than 20 million gallons per year in 2003 to its current capacity of nearly 200 million gallons and supports about 2,000 Illinois jobs.
Federal Biodiesel Tax Credit Update February 12, 2018
Congress approved a budget deal that included one-year extensions for tax breaks that expired after 2016, including the $1-per-gallon tax credit extended retroactively for one year through 2017.
Federal Biodiesel Tax Credit Update December 20, 2017
Congress passed the tax reform bill, but it does not include the biodiesel tax credit, among other temporary credits. Before the end of 2017, U.S. Senator Orrin Hatch (R-Utah) introduces a bill of extenders that includes the biodiesel tax credit. Congress will be negotiating packages to fund the government, which are set to expire January 19, 2018.
The biodiesel tax credit would resume as a blender’s credit, making it retroactive to 2017 and extending it through 2018.
Federal Biodiesel Tax Credit Update December 22, 2015
Congress passed a tax package that includes a two-year extension of a $1/gallon biodiesel tax credit. While ISG is pleased with the inclusion of an extension, it was kept as a blender’s credit instead of being reinstated as a producer’s credit. The producer’s credit would have more directly benefited the domestic biofuel industry and Illinois soybean farmers.