South Dakota Congresswoman Kristi Noem has introduced the Biodiesel Tax Incentive Reform and Extension Act of 2016. The measure extends the $1 per gallon tax credit for biodiesel through the end of 2019 and makes it a producer credit. South Dakota Soybean Association President Jerry Schmitz says reforming the blender’s credit eliminates the ability of foreign producers to claim the incentive.

National Biodiesel Board Vice President of Federal Affairs Ann Steckel says targeting the tax credit to domestically produced biodiesel would reduce the cost of the tax incentive to the Treasury. It would also level the playing field for U.S. farmers who are now competing against subsidized imports, which last year made up a third of the U.S. market.

She says they have several champions of the tax measure in Congress which leaves them hopeful for passage later in the year.

The biodiesel tax credit is set to expire in less than eight months and the incentive is needed to create stability and spur economic activity in the biodiesel industry.