The National Biodiesel Board (NBB) today released a new report on the “Importance of the Biodiesel Tax Credit” that highlights how uncertainty regarding extension of the biodiesel tax credit significantly increases business risks for biodiesel producers.
The report was written by John Urbanchuk, managing partner of ABF Economics. “The current uncertainty surrounding reinstatement and retroactivity of the tax credit is a significant disincentive for the U.S. biodiesel industry (blenders and producers) and has constrained industry expansion. Absence of a tax credit and uncertainty is one major reason the industry is operating at only 70 percent of industry production capacity,” according to the report.
Vice President of Federal Affairs Kurt Kovarik says the uncertainty has already forced some producers to slow or shut down production. “Nine biodiesel plants have already slashed production or closed up, laying off workers in Georgia, Iowa, Michigan, Mississippi and Pennsylvania. Dozens more could be forced to do the same in the next few months due to the instability in federal policy. Congress needs to act now to restore the biodiesel tax incentive and help the industry reopen plants and rehire workers.”
NBB CEO Donnell Rehagen, along with Kovarik and Urbanchuk, participated in a conference call with reporters to discuss the report.NBB call on importance of biodiesel tax credit