A bill that would extend the biodiesel tax incentive by five years, as well as changing the way the program is administered, has been introduced.
SustainableBusiness.com reports it is a bi-partisan measure from Democrat U.S. Senator Maria Cantwell of Washington state and Republican Sen. Charles Grassley of Iowa:
The Biodiesel Tax Incentive Reform and Extension Act is expected to provide stability and reliability to the biodiesel industry by extending the tax incentive for five years. In addition, the legislation would change the tax incentive from a blenders excise tax credit to a production excise tax credit. This change will focus the incentive on the domestic biodiesel industry, improve administration of the nation’s tax laws and protect the integrity of the credit, according to the National Biodiesel Board (NBB), the trade association for the U.S. biodiesel industry.
The bill gained the praise of the NBB:
“Domestic production and use of biodiesel is consistent with an energy policy that values the displacement of petroleum with low-carbon, renewable fuels. This legislation will provide certainty to biodiesel producers and improve the form and function of the biodiesel tax incentive. We strongly support this proposal and commend Senator Cantwell and Senator Grassley for introducing this forward thinking legislation,” said NBB CEO Joe Jobe.