Legislation was introduced in the House and Senate on Thursday to update biodiesel tax legislation as tax negotiations heated up on Capitol Hill. The National Biodiesel Board is calling on Congress to quickly pass a reformed biodiesel producer’s tax incentive. NBB Treasurer and farmer director Mike Cunningham says the industry can’t grow without some level of predictability on tax policy and the legislative clock is winding down.

He says the bill includes a key reform restructuring the incentive from a blender’s credit to a producer’s credit focused on domestic production. According to the Joint Committee on Taxation that reform would save about $90 million.

The new legislation, is sponsored in part by Senator Chuck Grassley of Iowa and Representative Kristi Noem of South Dakota. It builds on legislation that got unanimous support from the Senate Finance Committee in July.