House Ways and Means Select Revenue Measures Subcommittee Chairman Mike Thompson (D-CA) has introduced legislation to extend expired tax incentives, including the biodiesel tax incentive, which is scheduled for mark up Thursday June 20. The proposal would provide U.S. biodiesel producers certainty through 2020 and incentivize investment and growth in domestic production capacity.
“Biodiesel and renewable diesel producers across the United States thank Subcommittee Chairman Thompson for proposing a multiyear, forward-looking renewal of the tax incentive,” said National Biodiesel Board Vice President of Federal Affairs Kurt Kovarik. “The industry has been very vocal in asking for policy certainty that has proven successful in supporting industry growth over the years.”
NBB continues to work with Congressional champions of the biodiesel industry to highlight the urgency for renewing the tax incentive. The U.S. biodiesel market grew from about 100 million gallons in 2005, when the tax incentive was first implemented, to more than 2.6 billion gallons in 2018. The biodiesel tax incentive was last renewed in February 2018, but retroactively only for 2017; the credit lapsed as soon as it was renewed. While the biodiesel blenders tax credit has applied in each year from 2010–2016, it has only been in effect at the start of the calendar year in 2011, 2013 and 2016, while other years it has been applied retroactively.