“We have a great message to share with our elected officials,” said National Biodiesel Board CEO, Donnell Rehagen. “We want our messages and our success story to be top of mind now and when any tax extenders or reform is considered.”
The biodiesel industry representatives visited members of Congress with a call to extend the biodiesel tax incentive and move it from a blender’s tax credit to a producer’s tax credit. The current blender’s credit will expire at the end of this year and proposed legislation in both the House and Senate (HR 5240, S 3188) would adjust the credit to support domestic production over imports.
“Effective federal policy has helped level the playing field for our relatively new product. This is about so much more than a standard or tax code. It’s about real people, making a real difference to bring jobs and economic growth all while supporting clean air and renewable fuel options,” Rehagen explained.
Under the current “blender’s” structure of the incentive, foreign biodiesel imported to the U.S. and blended with petroleum diesel in the U.S. is eligible for the tax incentive. Increasingly, foreign biodiesel producers are taking advantage of the U.S. incentive by shipping their product here. In 2015 alone, some 670 million gallons of biodiesel and renewable diesel were imported to the U.S., making up nearly a third of the U.S. market.