Biodiesel industry applauds passage of the Inflation Reduction Act

The Minnesota Soybean Growers Association and Clean Fuels Alliance America thanked House leaders for extending the biodiesel and renewable diesel incentive and creating a new infrastructure grant program in the Inflation Reduction Act. The legislation will extend existing industry tax incentives and create a sustainable aviation fuel tax incentive through 2024. It also creates a new Clean Fuel Production Credit for 2025, 2026 and 2027 and a new Biofuel Infrastructure and Agriculture Product Market Expansion, with funding through September 2031.

“Cleaner, better fuels like biodiesel and renewable diesel are essential to America’s economy and environment. They support good-paying jobs, reduce fuel prices and the cost of transporting consumer goods, and cut carbon emissions by an average 74%,” stated Clean Fuels’ Vice President of Federal Affairs Kurt Kovarik. “We appreciate Congress providing our industry long-term certainty in tax policy, and we thank Representatives Cindy Axne and Angie Craig for their tireless advocacy of the biodiesel tax credit, as well as Chairman Richard Neal and Representative Mike Thompson for supporting its inclusion in today’s legislation.”

The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans. Biodiesel and renewable diesel on average reduce carbon emissions by 74% compared to petroleum diesel.

“If we really want to address climate change, then biodiesel and ethanol have to be part of the mix,” Rep. Craig told Minnesota farmers in July during a meeting in her Washington, D.C., office. “And we want to be American-energy independent.”

Minnesota’s currently in its fifth year of its B20 (20 percent biodiesel) mandate. Biodiesel contributes nearly $1.7 billion toward Minnesota’s economy, adding nearly 5,400 jobs.

“We thank Rep. Craig for her leadership on this issue. She’s a true supporter of agriculture and we all know how important biodiesel is to Minnesota’s economy and environment,” said MSGA President Bob Worth, who recently visited with Rep. Craig at Farmfest. “We also thank the Minnesota representatives and senators who supported extending this crucial tax credit.”

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