Rep Black Intros Biodiesel Tax Credit Extension Bill

Joanna Schroeder

Another federal bill has been introduced to extend the biodiesel tax credit. Rep. Diane Black (R-Tenn.) has introduced the “Biodiesel and Renewable Diesel Incentive Extension Act of 2016” (H.R. 5994). The bill extends the tax credit through 2018 and according to Black, would help fuel retailers continue to sell biodiesel blends at a cost competitive price as compared to traditional diesel. Unless the biodiesel tax credit is extended, it is set to expire at the end of this year.

repblack_officialphoto_condensed2The National Association of Truck Stop Owners (NATSO) applauded the introduction of the bill, VP of Government Affairs David Fialkov said of Black’s support of biodiesel, “Renewing the biodiesel blenders’ tax credit is the right decision for both fuel retailers and the American people. Without a blenders’ credit, fuel prices across the country will inevitably increase, which in turn would increase the costs of shipping while driving customers away from cleaner burning fuels. By extending the biodiesel tax credit, fuel marketers will be able to increase the volume of cleaner-burning fuels in the United States while simultaneously offering customers a lower price. It’s a win-win for everybody.

The Advanced Biofuels Association (ABFA) joined NATSO in commending Rep. Black, stressing this legislation would continue to protect those who are investing in the blending equipment and are selling all the fuel in the U.S., specifically the small producers, users of biodiesel and renewable diesel and the distributors. Both organizations say the bill also advances consumer consumption. The $1.00 per gallon biodiesel blenders’ tax credit enables fuel retailers to price the biofuel competitively at the pump.

NATSO also says that Congressional failure to renew the tax credit, or convert the tax credit from a blenders’ credit to a producers’ credit, would drive up biodiesel prices to a degree that would diminish consumer interest in the product, ultimately hindering U.S. efforts to advance the utilization of cleaner burning fuels.

advance biofuels, Biodiesel, Legislation