Biodiesel Tax Credit
For more than ten years, Congress has provided entities that blend biodiesel and renewable diesel into the diesel fuel supply a $1.00/gallon tax credit. The objectives of providing a tax credit for biodiesel are to reduce U.S. dependence upon petroleum-based products by incentivizing use of renewable fuels in the United States and achieve improvements in air quality by incorporating into diesel fuel a component with more attractive emissions characteristics.
Due to inaction by Congress, the tax credit expired at the end of 2016. NATSO is advocating that Congress extend the biodiesel blenders’ tax credit.
At the same time, certain lawmakers and interest groups are pursuing legislation that would replace the biodiesel blenders’ credit with a biodiesel producer credit. NATSO strongly opposes this policy shift, as it would result in fuel retailers paying a higher price for biodiesel that inevitably would be passed down to consumers in the form of higher prices at the pump. This would lead to less biodiesel consumption in the United States, and hinder the United States’ efforts to utilize cleaner burning fuels.
- Recent Items