Forty-six members of Congress have written a letter to House leaders in support of the biodiesel tax incentive.
The letter notes the biodiesel tax incentive was retroactively renewed for 2017 in the Bipartisan Budget Act of 2018, passed in March 2018. The incentive was not extended to 2018 and is currently expired.
“Biodiesel and renewable diesel producers are putting investments on hold in the face of the uncertainty created by the off-again, on-again nature of tax incentive eligibility. A multi-year extension of the biodiesel and renewable diesel incentives will provide the industry the certainty it needs to continue to generate the economic and environmental public benefits,” the letter reads.
“Right now, soybean farmers are harvesting a record crop but facing extreme uncertainty about the price they’ll receive and whether they’ll have access to markets,” said Kurt Kovarik, NBB’s Vice President of Federal Affairs. “Biodiesel adds value to every bushel of soybeans and provides a market for the growing surplus of soy oil. A multiyear extension of the biodiesel tax incentive would give farmers a welcome bit of certainty this year.
Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable diesel replacement that can be used in existing diesel engines without modification. It is the nation’s first domestically produced, commercially available advanced biofuel. NBB is the 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.
Source: National Biodiesel Board