Biofuel Tax Credits Out of Danger Zone After GOP Protest

Tight margins for House Republicans and billions of dollars at stake for the Midwest spared biodiesel and carbon capture tax incentives from the chopping block in GOP debt limit discussions, lawmakers and lobbyists said.

Early Wednesday morning, the House GOP carved out biofuel credits and an incentive for carbon oxide sequestration from their proposal to raise the debt limit, which included repealing a swath of clean-energy credits from last year’s tax-and-climate law. The change came after resistance from Midwest Republicans, whose districts rely on industries like ethanol production.

The House passed the bill Wednesday, though it’s dead-on-arrival in the Democratic-controlled ...