Hoeven: Congress Extends Biodiesel, Railroad Track Maintenance Tax Credits Through 2022

Senator Advanced Measures to Support Biofuel Industry & Infrastructure Development in North Dakota; Bill Repeals Obamacare Taxes

WASHINGTON – Senator John Hoeven today joined the Senate in passing legislation to extend expired tax provisions that benefit industry in North Dakota, including a retroactive extension from 2018 through 2022 for the: 

  • Biodiesel and Renewable Diesel Tax Credit – provides a credit of $1.00 per gallon of pure biodiesel to qualified biodiesel producers or blenders. 
    • The bill also extends the second-generation biofuel producer credit for one year, through 2020.
    • Railroad Track Maintenance Credit, also known as the 45G tax credit – Grants a 50 percent tax credit for qualified track maintenance conducted by short lines and regional railroads.
    • Hoeven is a cosponsor of the bipartisan BRACE Act, which would make this tax credit permanent.
    • The bill also includes the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act, bipartisan legislation Hoeven cosponsored to give tax-exempt cooperative organizations access to government grants and assistance, including rural broadband grants and FEMA disaster relief.

Additionally, the legislation repeals taxes created under Obamacare, including: 

    • The medical device tax.
    • The Cadillac tax on high-cost employer-provided health care plans.
    • The health insurance tax (HIT). 

The tax extender legislation is now headed to the president to be signed into law.

“With the new biodiesel refinery and our efforts to establish a crush facility at Spiritwood, we’re working to create additional value for North Dakota’s soybean producers and reduce our dependence on exports to other nations,” said Hoeven. “The extension of the biodiesel tax credit bolsters these efforts, while the credit for our short lines and regional railroad will support critical infrastructure investments in our state. At the same time, we’ve repealed three Obamacare taxes that needlessly increased the cost of health care and insurance. These measures will provide important benefits to our communities, consumers and the economy.” 

            In addition to the above provisions, the legislation includes:

    • The LIFT for Charities Act. Hoeven is a cosponsor of this bipartisan bill to repeal a tax on transportation fringe benefits for non-profit organizations, including churches.
    • A one-year extension, through 2020, of:
    • The New Markets Tax Credit, which supports private investment in low-income communities. Hoeven is cosponsoring legislation to make this credit permanent.
    • Reduced rates on beer, wine and distilled spirits, similar to the bipartisan Craft Beverage Modernization Act, of which Hoeven is a cosponsor.
    • The mortgage debt relief tax credit.
    • Employer credit for paid family and medical leave.
    • Work Opportunity Tax Credit.
    • Indian Employment Credit.
    • Accelerated depreciation for business property on Indian Reservations.
    • The production credit for Indian coal facilities.