Finkenauer Secures Biodiesel Tax Credit in Ways & Means Package

WASHINGTON, DC – Today, Congresswoman Abby Finkenauer (IA-01) advanced two of her bipartisan priorities, securing tax credits for the Iowa’s biodiesel industry and tax credits that will provide relief to Iowa communities recovering from flooding. Both will be included in a tax credit extension package that will move to the floor of the House of Representatives for a vote.

Finkenauer introduced the Biodiesel Tax Credit Extension Act and has been working with Democratic and Republican colleagues since her first day in Congress to secure an extension of this important tax credit. Producers and businesses at every stage of the biodiesel production and consumption process rely on these tax credits to plan their investments, grow their businesses, and pass on the savings to consumers. The biodiesel industry supports over 60,000 jobs across the United States and generates over $11 billion in economic impact. 

“This extension should never have been left to expire last Congress,” said Congresswoman Finkenauer. “I’m hopeful that we’ll see progress on an issue that’s vital to Iowa’s economy, at a time when farm income is at its lowest point in more than a decade and our farmers and working families are bearing the brunt of the Administration’s continuing trade war. The extension is common sense and it’s an example of finding common ground, the way I believed Washington was supposed to work. I’ll continue to have the backs of Iowans every day and to do the work that moves us forward.” 

Congress had previously extended the tax credit retroactively for 2017, but left it expired for 2018 and beyond. Last month, Finkenauer was joined by Senators Grassley and Ernst, as well as industry leaders, at a press conference supporting the legislation. Finkenauer testified before the Ways and Means Committee earlier this year, sharing the stories of Iowa producers and businesses that would benefit from the legislation. 

“NBB and its members have worked with Representative Abby Finkenauer to renew the biodiesel tax incentive and we appreciate her steadfast efforts as a champion of Iowa’s biodiesel industry,” said National Biodiesel Board Vice President, Kurt Kovarik. “The proposed multiyear, forward-looking renewal of the tax incentive will provide our industry certainty, allowing Iowa’s biodiesel and renewable diesel producers to invest, boost production, create jobs, and contribute to the nation’s economic growth.”

“Iowa Renewable Fuel Association members thank Representative Finkenauer for her leadership in the effort to reinstate the biodiesel tax credit,” said Monte Shaw, Executive Director of the Iowa Renewable Fuel Association. “It is important the credit is reinstated quickly to ensure biodiesel producers can meet the growing demand for clean, low-carbon fuels.”

Finkenauer secured another top priority in the larger tax credit package: relief for Iowa families and businesses affected by flooding and other natural disasters. It allows filing extensions, provides tax credits for employers to retain employees in disaster-affected areas, lowers the threshold for individuals to receive deductions for disaster-related losses, suspends limitations on deductions for disaster relief charities, and mitigates penalties for early retirement plan withdrawal. 

Finkenauer was also successful in in pushing for tax credits to strengthen Iowa’s wind energy sector and series of other measures to strengthen the biofuels industry, including tax credits for second generation biofuels and biofuel infrastructure. 

The larger package contains other Finkenauer-supported measures that will benefit Iowa’s working families, including the expansion of the earned income tax credit and making the child-tax credit fully refundable. Additionally, it addresses a major priority of Iowa non-profits, eliminating a tax on these organizations that was created by the 2017 Republican tax law which required them to pay a 21% tax on the value of transit and parking benefits they provided to workers, limiting their ability to serve their communities.