“Temporary Policy in the Internal Revenue Code” was the title of a House Ways and Means Select Revenue Measures Subcommittee hearing this week where the National Biodiesel Board (NBB) submitted written testimony urging lawmakers to immediately extend the biodiesel and renewable diesel tax incentive to end uncertainty.
Kurt Kovarik, NBB Vice President of Federal Affairs for the National Biodiesel Board (NBB), wrote in his submitted testimony, “While a long-term extension would provide the necessary policy certainty, our industry urgently needs an immediate extension of the biodiesel tax incentive for 2018 and 2019, at least, to end the current climate of uncertainty surrounding the industry.”
“Biodiesel and renewable diesel producers and blenders have been operating for as many as 14 months with the expectation that they will eventually be able to claim credits for 2018 and amend their financial statements. Individual NBB members are already being forced to put projects on hold and reduce investments, due to uncertainty about renewal of the tax incentive. That uncertainty will affect future growth.”
Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines without modification. It is the nation’s first domestically produced, commercially available advanced biofuel. NBB is the U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers, and fuel distributors, as well as the U.S. renewable diesel industry.