A new study shows that the Biodiesel Tax Credit helped the industry support $21.6 billion in economy-wide sales, employment for over 60,000 workers with wages and benefits totaling $3.8 billion, and nearly $2 billion in state and federal tax revenues combined in 2017.
The analysis by FTI Consulting – “The Biodiesel Industry: Impacts on the Economy, Environment and Energy Security” – analyzed the financial and socioeconomic impact of the U.S. biodiesel industry and found that the tax credit is essential to the industry’s growth and prosperity.
Further analysis revealed that if the BTC were discontinued in 2017, biodiesel producers would have suffered an average loss of $0.25 per gallon produced and, if not extended in 2018, the industry would no longer be able to sustain its prior progress.
“Our analysis found that the BTC helps advance a host of U.S. policy priorities including energy security and self-reliance, rural economic development, job creation, and production of a lower emissions fuel that works with our existing vehicle fleet and infrastructure,” said report author Kenneth Ditzel. “It’s also very clear from our analysis how fundamental the BTC is to ensure a robust biodiesel sector in the U.S. Throughout 2018 industry actors produced biodiesel with the understanding that the BTC would be retroactively extended. Without that policy in place the industry would look much different.”
The study also found the biodiesel industry generated a 14.8 million ton reduction in GHG emissions, the equivalent of taking 3.2 million cars off U.S. roads and equal to approximately $750 million in social benefits.
