Congressional leaders are close to a deal that would extend a slew of expired incentives for biodiesel, alcoholic beverages and short-line railroads, though it could depend on completing a broader tax compromise in time to add the provisions to a must-pass spending bill.
Top House and Senate officials negotiating through the weekend tentatively agreed to renew those “tax extenders,” including a $1-per-gallon credit for biodiesel typically made from soybeans and used cooking oil, according to three people familiar with the matter. Under the working compromise, the credits -- many of which expired almost two years ago -- would be retroactively renewed and extended through the end of 2020, said the people, who asked not to be named discussing private deliberations.
Negotiators are still working on a potential deal to fix a mistake in the 2017 tax law that would benefit
In exchange for fixing the GOP tax law, Democrats are pushing for an extension of renewable energy tax breaks. The 30% solar tax credit is set to begin phasing out in 2020. Also hanging in the balance are an extension of credits for wind power and the creation of new credits for energy storage.
The White House has been lobbying Republicans against renewing tax credits that support alternative power, making a politically contentious fight, according to two people familiar with the matter.
The tax package wasn’t expected to be ready in time to be included in the version of a government spending bill released midday Monday, though negotiators are seeking to incorporate it later in the day when House representatives consider rules for debating the legislation.
Supporters of the biodiesel tax credit, including producers of the alternative fuel and oil refiners required to use it, have
Biodiesel producers were up in trading Monday. Renewable Energy Group Inc. was up 11.9% as of 12:48 p.m.
The biofuels and tax extenders deal could depend upon Republicans and Democrats hashing out a broader compromise that could include new tax breaks for retirement savings and repealing some levies funding the Affordable Care Act.
Lawmakers negotiated over the weekend, but had failed to come to an agreement on those broader tax issues as of Monday morning, said Ashley Schapitl, a spokeswoman for Senator
In addition to the biodiesel credit, the extenders provisions would renew incentives supporting racetracks, film production, short-line railroads, alcoholic beverages and other industries.
Optimism was fading Monday among lobbyist pushing for lucrative tax breaks for electric vehicles. Negotiators weren’t considering including an expansion of that credit as of Monday afternoon and the White House was lobbying against it.
Electric-car makers such as
(Updates with talks about retailer tax breaks, renewable energy starting in the third paragraph)
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