Earlier this week, U.S. Rep. Kevin Brady, R-Texas, chairman of the House Ways & Means Committee, released a proposal to make technical corrections to the Tax Cuts and Jobs Act and to extend several expired tax credits, including the biodiesel and renewable diesel tax incentive.
National Biodiesel Board (NBB) says it welcomes the proposal for a multiyear extension of this incentive; it would keep the credit at its current rate of $1.00 per gallon for 2018 through 2021 but gradually reduce it to $0.33 per gallon by 2024 and then allow it to expire.
“The biodiesel industry has long advocated for a long-term tax extension to provide certainty and predictably for producers and feedstock providers,” states Kurt Kovarik, NBB’s vice president of federal affairs. “Too often, the credit has been allowed to lapse and then reinstated retroactively, which does not provide the certainty businesses need to plan, invest and create jobs. We appreciate the recognition that the biodiesel industry is integral to our domestic energy needs through this long-term extension. We look forward to working with our supporters on Capitol Hill to ensure that consumers, producers and marketers benefit from a long-term, forward-looking pro-growth tax policy.”
NBB is a U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers and fuel distributors, as well as the U.S. renewable diesel industry.