The House may soon consider legislation that would extend several expired tax provisions, including Farm Bureau-supported credits that promote the production of biodiesel and support the sustainability of short line railroads. The measure may be attached to an end-of-the-year legislative package or another bill Congress is looking to finalize before the end of the month.
Tax credits for biodiesel, renewable biodiesel and second-generation biofuel, along with the alternative fuel vehicle refueling property tax credit, expired on Dec. 31, 2017. These cleaner-burning renewable fuels provide expanded markets for farm commodities.
“Tax incentives that encourage further development and use of renewable fuels and renewable energy benefit our nation and aid the agriculture sector. The certainty of a multi-year extension will provide the biodiesel industry with the stability it needs for long-term planning and strategic investment,” American Farm Bureau Federation President Zippy Duvall said in a recent letter to House members.
The tax credit for short line railroads, which farmers and ranchers depend on to deliver their products to market and to supply them with the inputs they need to run their businesses, also expired at the end of last year.
“Tax incentives for track maintenance help to upgrade and continue local rail service that connects rail customers to the national main line rail network. Permanent extension of the credit is warranted because rail transportation remains important in providing a strong rural economy now and into the future,” Duvall wrote.
Farm Bureau is asking House lawmakers to approve the biodiesel and short line railroad extenders with the goal of passing them into law before the end of this session of Congress.