Bill intro’d to extend, phase out biodiesel blenders tax credit
Source: By Ron Kotrba, Biodiesel Magazine • Posted: Thursday, July 20, 2017
“We are glad to see continued support for biodiesel through the tax code,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board. “As the leading advanced biofuel, biodiesel has contributed to significant reductions in waste and pollution. However, the benefits to switching to a production tax credit are better than keeping it a blenders credit—tens of millions of taxpayer dollars are saved, jobs are created here at home instead of abroad, and consumers continue to enjoy lower costs.”
Michael McAdams, president of the Advanced Biofuels Association, said the legislation is crucial to the continued success for all biodiesel sold and used in the U.S. “The continuation of the existing tax credit is the only way that money finds its way back to the pockets of those buying the fuel through lower cost,” he said.
“The five-year phase-out contained in this legislation—which mirrors policy that has been enacted for other alternative energy sources such as wind and solar—is designed to provide much-needed policy certainty to the market,” said Lisa Mullings, president and CEO of the National Association of Truck Stop Owners. “The phase-out is also compatible with congressional efforts to reform and simplify the tax code.”
Brad Puryear, general counsel of Mansfield Energy and chairman of the legislative committee for the fuel marketing association SIGMA, said, “The blenders credit encourages fuel marketers to expand usage of biodiesel, which contributes to American energy independence, promotes cleaner energy and supports the mission of the Renewable Fuel Standard. The blenders credit also results in a more competitive price of diesel fuel at the pump for all consumers. The phase out is fiscally prudent and provides business with clear direction and time to adapt to changes.”
The NBB does not support phasing out the biodiesel tax incentive.