(Biofuels Journal) It just makes sense! That’s the sentiment from the Iowa Biodiesel Board and other supporters as Iowa Governor Terry Branstad signed SF 2309 into law today, expanding state biodiesel incentives.
The bill includes a tax credit that helps keep the state’s 13 biodiesel producers competitive on a national scale.
It also includes a retailer’s credit that entices fuel retailers to carry higher blends of biodiesel than they may currently carry.
Flanked by biodiesel supporters from around the state, Branstad signed the legislation at the REG Newton biodiesel plant in Newton, Iowa. READ MORE and MORE (Newton Daily News) and MORE (Globe Gazette)
Excerpt from Newton Daily News: (REG vice president of manufacturing, Brad) Albin said there might be a point in the future when incentives might prove unhealthy for the growth of the biofuel industry, but there is still momentum to seize in the next few years.
“We spend so much as a nation protecting foreign oil,” Albin said. “Petroleum has had incentives for 120 years. Renewable energy just makes sense.”
A number of modifications take place in incentives under SF 2309, many specific to the percentage of ethanol blend, sometimes varying between summer and winter. The Iowa Biodiesel Board announced earlier in the year extending the credit system beyond 2017 was its top priority in the 2016 legislative session. READ MORE
Excerpt from Globe Gazette: Effective in 2018, the production payment currently available for biodiesel manufacturers located in Iowa equal to 2 cents per gallon produced up to a total of 25 million annual gallons for each manufacturing facility is extended seven years to Jan. 1, 2025. S.F. 2309 also extends the tax credits for E-15 plus and E-85 blended gasoline, as well as biodiesel blended fuel by seven years to Jan. 1, 2025.
Other provisions extend and expand the biodiesel promotion retail tax credit. The incentive will continue to provide petroleum retailers 4.5 cents a gallon on blends of at least 5 percent biodiesel (B5) through 2017. From 2018 to 2024, the B5 incentive will drop to 3.5 cents per gallon, but an additional incentive of 5.5 cents per gallon will take effect for gallons of B11 and higher. READ MORE