Grassley, Wyden tax extenders bill includes renewable fuels | TheFencePost.com

Grassley, Wyden tax extenders bill includes renewable fuels

-The Hagstrom Report

Senate Finance Committee Chairman Charles Grassley, R-Iowa, and ranking member Ron Wyden, D-Ore., on Thursday introduced bipartisan legislation to retroactively extend tax provisions that expired at the end of 2017 and 2018 through the balance of this year, and to provide disaster tax relief benefits to individuals and businesses affected by major disasters occurring in 2018.

“It’s important this is a two-year bill covering 2019, and it includes key renewable energy incentives I’m proud to fight for,” Wyden said.

“Filing season for 2018 is already underway, so the Congress should act on this quickly.”

“Congress needs to get out of this bad habit of regular retroactive extensions of these tax provisions,” Grassley said.

“The whole point of these federal tax incentives is to encourage certain behaviors, especially investments in alternative energies, energy efficiency and transportation. The best way to do that is ahead of time, not retroactively.”

“But it’s also the case that many of these industries made business decisions last year based on that reasonable expectation that they would be extended, since it’s what Congress has consistently done in the past,” Grassley said. “I hope the House of Representatives acts soon, since taxpayers affected by these expired provisions have to file their tax returns in the coming weeks. Thousands of jobs across the country depend on it.”

There are 26 provisions that expired at the end of 2017 and three others that expired at the end of 2018. The legislation would extend credits at their current level for 2018 and 2019.

The National Biodiesel Board thanked Grassley and Wyden for introducing the legislation, which would extend temporary tax incentives for biodiesel and renewable diesel.

“NBB and its members are grateful to senators Grassley and Wyden for taking action to extend the expired biodiesel tax incentive,” Kurt Kovarik, NBB’s vice president of federal affairs, stated. “We hope that both House and Senate will address the expired tax provisions as soon as possible.”

“Congress renewed the biodiesel tax incentive in February 2018, but only retroactively for 2017,” Kovarik added.

“Biodiesel producers have counted on the credit to secure blending contracts and financing for plant expansions and upgrades. But they are now facing the longest period of uncertainty ever, as the tax incentive remains expired two full months after the start of the year. The uncertainty is already forcing producers to put plans for facility upgrades and expansions on hold.”