A proposal introduced by Rep. Kevin Brady, R-Texas, would extend the expired biodiesel and renewable diesel tax incentive.
Brady, chairman of the House Ways and Means Committee, released a 297-page tax package on Nov. 26 to address issues some lawmakers are interested in tackling during the lame duck session.
According to The Hill, the legislation includes provisions to:
- Renew expired tax provisions,
- Make technical fixes to last year’s tax cut law,
- Provide incentives for retirement savings,
- Provide tax relief for disaster victims, and
- Makes changes to the IRS.
The National Biodiesel Board welcomed the proposal for a multi-year extension of the biodiesel tax credit. The proposal keeps the credit at its rate of $1.00 per gallon for 2018 through 2021, but gradually reduces it to $0.33 per gallon by 2024 and then allows 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,” said Kurt Kovarik, vice president of Federal Affairs with the National Biodiesel Board. “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.”
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.
Source: National Biodiesel Board