Despite the loss of the federal biodiesel tax credit, biodiesel production in Iowa remained strong during the first quarter of 2012.
According to figures released by the Iowa Department of Revenue, ten Iowa biodiesel plants produced nearly 42 million gallons from January through March. The Iowa Renewable Fuels Association (IRFA) says that’s on pace with 2011 production, although down from year-end levels.
IRFA executive director Monte Shaw says the numbers show Iowa’s new biodiesel production tax credit is having a positive impact.
In 2011, the Iowa legislature enacted a short-term tax credit to help Iowa’s biodiesel industry compete against states that provide large biodiesel incentives. The Iowa program went into effect on January 1st, 2012, the same day the federal biodiesel program expired.
Shaw says with additional biodiesel production set to come on line in Iowa, he hopes to see the production numbers increase throughout the year.
Iowa has 13 biodiesel facilities with the capacity to produce 320 million gallons annually. A study released earlier this year found that biodiesel production in Iowa supported 7,350 jobs.