The biodiesel industry is calling on the Biden administration to release the rules behind the 45Z tax credit set to take effect on January 1st.
They claim the lack of guidance is already impacting biodiesel production and if not soon provided, it could lead to an industry shutdown.
Now is the time suppliers would typically be contracting for biodiesel feedstock used in January. However, a lack of insight on the new tax credit rules has put that on pause.
It has left both feedstock suppliers and biodiesel producers unsure how to price their products.
A bipartisan group of lawmakers is proposing an extension of the 45Z tax credit for products derived from domestic feedstocks.
Instead of lasting for only two years, Senators like Roger Marshall, Amy Klobuchar, and Deb Fischer are asking it be extended to ten years.
A companion bill is also being sponsored in the House. U.S. Secretary of Ag Tom Vilsack has previously warned that restricting the incentives to only domestically produced feedstocks could provoke retaliation against U.S. ag exports.
