Congress To Take Up Tax Extenders This Week

Dec 17, 2019

Congressional leaders have reached a deal on tax extenders and are expected to take them up this week along with the floor debate and votes on a spending package. Energy related tax extenders similar to those in earlier iterations of the tax extenders legislation are included. If passed without amendment they would include:

  • A retroactive extension of the biodiesel and renewable diesel tax credits. The credits would be reinstated as of January 1, 2018 and be extended through December 31, 2022. The legislation includes language directing the IRS to issue a special rule for a one-time claim for 2018 and 2019 tax credits;
  • A retroactive extension of the second generation biofuel producer credit. The credit would be reinstated as of January 1, 2018 and be extended through January 1, 2021;
  • A retroactive extension and clarification of the alternative fuel and alternative fuel mixture credits through December 31, 2020. The clarification is language that states that an alternative fuel mixture credit is not available to mixtures of that contain liquefied petroleum gas, compressed or liquefied natural gas and compressed or liquefied gas derived from biomass. The clarifying language applies on a forward basis and, in a change to prior versions of the bill, will include the retroactive period to the extent that claims were filed after January 1, 2018 and have not yet been paid;
  • Extension of the oil spill tax through 2020. The tax would be reinstated on the 1st day of the calendar month following enactment of the legislation. If the legislation passes this week the tax will be reinstated effective January 1, 2020.