Washington, DC - The National Biodiesel Board (NBB) today thanked Sen. Chuck Grassley (R-IA), chairman, and Sen. Ron Wyden (D-OR), ranking member of the Senate Finance Committee, for introducing legislation to provide a two-year extension of expired temporary tax incentives, including the biodiesel and renewable diesel tax incentive.
The legislation also includes important tax provisions for those impacted by natural disasters.
“NBB and its members are grateful to Senators Grassley and Wyden for taking action to extend the expired biodiesel tax incentive,” Kurt Kovarik, NBB’s Vice President of Federal Affairs, stated.
“We hope that both House and Senate will address the expired tax provisions as soon as possible.
“Congress renewed the biodiesel tax incentive in February 2018, but only retroactively for 2017.
"Biodiesel producers have counted on the credit to secure blending contracts and financing for plant expansions and upgrades.
"But they are now facing the longest period of uncertainty ever, as the tax incentive remains expired two full months after the start of the year. The uncertainty is already forcing producers to put plans for facility upgrades and expansions on hold.
“NBB continues to appreciate the strong bipartisan support in Congress for biodiesel and renewable diesel industry workers.
"Biodiesel is the most widely commercially available advanced biofuel, providing substantial environmental and economic benefits. Stable long-term tax policy is important to continue the nation’s path to cleaner fuels and energy security.”
With plants in every state, the U.S. biodiesel and renewable diesel industry supports more than 60,000 jobs, paying more than $2.5 billion in annual wages and generating more than $11 billion in economic impact. Every 100 million gallons of biodiesel production supports 3,200 jobs.
The U.S. biodiesel market has grown from about 100 million gallons in 2005, when the tax incentive was first implemented, to more than 2.6 billion gallons annually since 2016.
The biodiesel tax incentive helps producers across the country continue to invest in capacity for future growth.
For more information, please contact Paul Winters at 202-737-8801.