Here's Why Renewable Energy Group Jumped Today
Shares of Renewable Energy Group (NASDAQ: REGI) gained as much as 12.5% today ahead of an important deadline in Washington. Lawmakers are working on a new federal spending deal before funding runs out this Friday. However, in order to have time to introduce, review, and vote on a new spending plan, lawmakers need to finalize the bill by the end of the day today (Dec. 16).
According to reporting by Bloomberg, lawmakers have been negotiating extensions to several tax credits, including the federal biodiesel mixture excise tax credit (BTC) for biodiesel and renewable diesel producers, that could be included in the federal spending bill. The BTC provides a $1-per-gallon tax credit for the first entity to blend biodiesel with petroleum-based fuel (usually the biodiesel producer), but it was allowed to expire on the last day of 2017.
Discussions over the weekend included proposals to retroactively reinstate the subsidy to cover all production starting from the first day of 2018 and extend the subsidy through the end of 2020. That would be the best-case scenario for Renewable Energy Group. As of 12:58 p.m. EST, the renewable energy stock had settled to a 12% gain.
Source Fool.com
