Iowa to set biodiesel production record
Iowa Renewable Fuels Association (IRFA) officials have announced that biodiesel production remained strong during the third quarter of 2012.
Figures released by the Iowa Department of Revenue show 10 Iowa biodiesel plants claiming tax credits on more than 44.2 million gallons of production from July through September.
One or more of the production facilities officials said have reached the tax credit program cap.
Actual Iowa biodiesel production was higher than the number submitted for credits, they said.
The Iowa Legislature enacted a short-term "modest" biodiesel production tax credit in 2011 to help Iowa's biodiesel community compete against states that provide large biodiesel incentives. The tax credit became effective Jan. 1, 2012.
Monte Shaw, executive director, IRFA, said that while 4th quarter demand appears to be down somewhat, Iowa produced more than 150 million gallons of biodiesel during the first three quarters of 2012.
"The state is on target to break the biodiesel production record of 169 million gallons set in 2011," Shaw said. "This is great news for Iowa jobs and farm income.
"It is also good news for Iowa livestock producers because biodiesel production increases the value of their animals while reducing their feed costs," Shaw said.