Biodiesel Companies Press Congress for tax Credit Extension

Source: By Todd Neeley, DTN Staff Reporter • Posted: Thursday, March 28, 2019

Congress retroactively extended the incentive for 2017, in February 2018. That left the credit expired for 2018 and beyond.In the letter, the biodiesel industry stakeholders write, “The future of the credit has been unclear for more than 14 months. That uncertainty is curtailing investments in new plants and capital projects to upgrade existing plants.It is beginning to force some producers, blenders and distributors to cut back purchases of raw materials and deliveries of renewable fuel to consumers, which will have impacts across the economy.A group of more than 70 representatives of the biodiesel industry is pressing leaders in the U.S. House of Representatives to pass a multi-year extension of the biodiesel blenders credit, in a letter delivered to the House on Tuesday.

The National Biodiesel Board said in a news release said a renewal of the biodiesel and renewable diesel tax incentive was “an urgent priority.”

Congress retroactively extended the incentive for 2017, in February 2018. That left the credit expired for 2018 and beyond.In the letter, the biodiesel industry stakeholders write, “The future of the credit has been unclear for more than 14 months. That uncertainty is curtailing investments in new plants and capital projects to upgrade existing plants. It is beginning to force some producers, blenders and distributors to cut back purchases of raw materials and deliveries of renewable fuel to consumers, which will have impacts across the economy.

“The U.S. biodiesel and renewable diesel industry’s continued success is now at stake. Tens of thousands of American workers and manufacturers — as well as the millions of Americans who benefit from cleaner air and water — are depending on you to provide our industry the certainty we need to secure investments and continue growing over the next several years.”The U.S. biodiesel and renewable diesel market grew from about 100 million gallons in 2005, when the incentive was first implemented, to more than 2.6 billion gallons annually since 2016.

“The biodiesel industry has long advocated for a multi-year extension of the tax incentive, Kurt Kovarik, vice president of federal affairs with NBB, said in a statement. “But because the incentive has been expired for 15 months — the longest period of uncertainty for this policy since its start — it is urgent that Congress act immediately to provide the biodiesel industry certainty for 2018 and 2019.”

Read the letter here: http://kce.informz.net/…

Todd Neeley can be reached at todd.neeley@dtn.com

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