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Biodiesel Producers Support Biodiesel Tax Credit (Ind. Report)
NBB
Date: 2018-06-27
In a recent National Biodiesel Board (NBB) letter to House Speaker Paul Ryan (R-Wisconsin), Senate Majority Leader Mitch McConnell (R-Kentucky), House Democratic Leader Nancy Pelosi (D-California), Senate Minority Leader Charles Schumer (D-New York), House Ways and Means Committee Chairman Kevin Brady (R-Texas), and Senate Committee on Finance Chairman Orrin Hatch (R-Utah), the NBB wrote:

"On behalf of a diverse community of biodiesel producers, feedstock providers, blenders, fuel marketers and consumers, we are pleased to announce that we have united around a single position -- to maintain and extend the biodiesel tax credit at the blender level.

"The blenders credit has worked successfully to build a robust biodiesel and renewable diesel industry -- 100 million gallons in 2005 to nearly 2.6 billion gallons in 2017. The tax credit is an important demand stimulus, which improves plant efficiencies, encourages investment in U.S. distribution infrastructure and supports high-paying jobs throughout the country, while providing fuels that significantly reduce greenhouse gas emissions. On top of this, it has afforded customers such as the trucking industry and heating oil users fuels that are more economic and environmentally competitive.

"Extending the biodiesel blenders credit will allow us to continue to provide the economic and environmental benefits associated with the program.

"Unfortunately, the uncertainty caused by the "on-again, off-again" tempo of legislative extensions, including the Bipartisan Budget Act of 2018 which retroactively extended the biodiesel tax incentives through the end of 2017, has somewhat frustrated our sector's ability to anticipate the availability of the incentives and make the necessary investments. This severely disrupts access to capital, as well as the ability to hire and expand. Given that Congress has frequently extended the credit retroactively, market participants have come to reasonably rely on the credit being retroactively extended when undertaking business and investment decisions. Accordingly, the undersigned trade associations and companies urge Congress to restore the tax credit as soon as possible.

"To provide certainty in planning, we believe Congress should extend the full $1.00 per gallon tax credit for 2018 and 2019. Beyond that, we are seeking long-term certainty, including a permanent tax incentive at a level that will continue to foster growth in the domestic biodiesel market.

"Since the credit's inception, the market responded as Congress intended. We urge Congress to extend this successful program."

In addition to NBB, the letter was signed by the Advanced Biofuels Association, the American Trucking Associations, National Association of Convenience Stores, National Renderers Association, NATSO, Representing America's Travel Centers and Truckstops, New England Fuels Institute, Petroleum Marketers Association of America, and Society of Independent Gasoline Marketers of America. (Source: National Biodiesel Board, 25 June, , 2018) Contact: National Biodiesel Board, Kurt Kovarik, VP of Federal Affairs, 800) 841-5849, www.biodiesel.org

More Low-Carbon Energy News NBB,  Biodiesel,  Bioodiesel Tax Credit,  

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