House Package To Revive But Phase Out Biodiesel Tax Credit

A package unveiled Monday by House Ways and Means Committee Chairman Kevin Brady, R-Texas, would revive the lapsed $1-per-gallon tax credit for biodiesel but gradually phase it out after 2021. The plan would lower the tax incentive to 75 cents per gallon starting in 2022, reduce it to 50 cents in 2023 and 33 cents in 2024. The credit would be eliminated after 2024. The $1.01-per-gallon tax credit for second-generation biofuels, including ethanol derived from corn stover or wood chips, and a separate tax benefit for biofuel pumps would be extended only for 2018. While the measure may clear the House, some are questioning whether the package can clear the Senate. However, the measure also includes disaster relief, which could help grease the skids toward passage.