United Group Insurance

Biodiesel producers say tax credit could help lagging industry

Ag/Outdoor, News

July 7th, 2025 by Ric Hanson

(Radio Iowa) – Iowa’s biodiesel producers says a credit in the spending and tax bill signed by President Donald Trump last week should help the industry. Iowa Biodiesel Board Executive Director Grant Kimberly credits Iowa’s Congressional delegation for negotiating several provisions that will help smaller biodiesel producers, who have been struggling recently.  “Senator Grassley in particular, was, was really solely instrumental in making sure that also the small producer biodiesel credit was added into this. They call it the 40-A, the, the old program bringing it back, and adding that in, and, and that’s going to, in particular help plants in Iowa, the independent biodiesel plants in Iowa and throughout the Midwest,” he says.

Some smaller biodiesel plants in the state have been idled due to market uncertainty.  “This is really important to get this legislation passed. I mean, the, the biodiesel industry has been struggling, to put it lightly here in the last, really in the last year and a half.”

Kimberly says they’ll still need more guidance on tax credits before production returns to full capacity.