National Biodiesel Board pleased with tax extension

Congress released the tax and spending proposal Tuesday that includes the reinstatement of the expired biodiesel tax incentive.

“Restoring this tax incentive will create jobs and economic activity at biodiesel plants across the country, so we want to thank leaders in the House and Senate for proposing this extension,” Anne Steckel, the National Biodiesel Board's vice president of federal affairs, said. “Unfortunately the impact would be muted because this proposal would continue allowing foreign biodiesel to qualify for the tax incentive. This not only costs taxpayers more money but it paves the way for foreign fuels that already receive incentives in their home countries to undercut U.S. production.

“We have yet to hear any member of Congress articulate why US tax dollars should be used to support foreign production. Clearly, incentivizing predatory biodiesel imports was not the intent of Congress, so we will continue urging Congress to make this reform.”

The National Biodiesel Board welcomes the Tax Extenders Proposal because of its potential to create new jobs and improve the economy. Currently, biodiesel produced overseas, in places such as Argentina, Asia and Europe, is blended with diesel in the U.S. qualifies for the $1 per gallon tax credit under the blender’s tax credit. 

“We want to thank Sens. [Chuck] Grassley (R-IA) and [Maria] Cantwell (D-WA) and Reps. [Kristi] Noem (R-SD) and [Bill] Pascrell (D-NJ) for sponsoring the biodiesel incentive legislation and for pushing so hard to support domestic producers and jobs with this producer’s reform,” Steckel said. “Given the short-term nature of this extension, we will be back at it next year fighting for the reform again.”