Ernst to IRS: Process biodiesel tax credit claims

U.S. Sen. Joni Ernst (R-IA) recently requested that the Internal Revenue Service (IRS) promptly process 2018-2019 biodiesel tax credit claims that were included in last year’s biodiesel tax credit in the year-end funding package.

“With our strong support, Congress took action and renewed the tax incentive for five years in order to support this important industry and provide a positive market signal,” wrote Sen. Ernst and U.S. Sen. Chuck Grassley (R-IA) in a Feb. 13 sent to IRS Commissioner Charles Rettig. “Timely payment of claims for 2018 and 2019 is necessary for the recovery of the entire biodiesel industry, including producers, blenders and farmers.”

The IRS issued timely guidance for biodiesel, second-generation biofuel, and alternative fuel producers and blenders to claim 2018 and 2019 tax credits, according to the lawmakers’ letter, which noted that U.S. biofuel producers have experienced extreme hardship during the last two years due to the “unprecedented length in the lapse of these credits.”

In fact, 10 biodiesel producers closed or cut production due to poor market conditions, wrote the senators.

“The timeframe and procedures you provided will allow biofuel producers to submit claims for the retroactive credits within the next few weeks,” wrote Ernst and her colleague. “It is critical that IRS process these claims with all due speed.”

Their letter has been applauded by the Iowa Biodiesel Board, Iowa farmers and producers, and the National Biodiesel Board.

For instance, Grant Kimberley from the Iowa Biodiesel Board said he appreciated “their initiative on our industry’s behalf with this letter to IRS Commissioner Charles P. Rettig, urging his agency to process claims for 2018 and 2019 tax credits quickly.”

“Renewal of the biodiesel tax incentive will help sustain and build an important market for Iowa’s soybean growers, who faced a very tough season last year,” said Dave Walton, owner of Walton Farms and Walton Farms Custom Ag. “We appreciate that Senators Ernst and Grassley stood with Iowa’s farmers and biodiesel producers throughout the challenges.”