ATA Supports Keeping Biodiesel Tax Credit for Blenders

American Trucking Associations (ATA) President and CEO Bill Graves recently urged Members of Congress to keep the biodiesel tax credit at the blender level, saying that the incentive has been proven to lead to lower diesel prices at the pump. In a letter distributed to Members of Congress, Graves makes clear that converting the blenders credit to a producers credit is bad policy for consumers.
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American Trucking Associations (ATA) President and CEO Bill Graves recently urged Members of Congress to keep the biodiesel tax credit at the blender level, saying that the incentive has been proven to lead to lower diesel prices at the pump. In a letter distributed to Members of Congress, Graves makes clear that converting the blenders credit to a producers credit is bad policy for consumers.

"For the past 10 years, the biodiesel blenders credit has led to lower diesel prices at the pump. Given the critical importance of trucking and diesel fuel in moving our nation's goods, lowering the cost of biodiesel not only makes fuel cheaper for fleets, but it subsequently makes goods more affordable for consumers," Graves wrote.
 
"Reforming the biodiesel tax incentive into a producer credit would result in fuel retailers paying a higher price for biodiesel that would, in turn, be passed through to trucking fleets and higher pricing of consumer goods.  This would also lead to a disincentive to purchase biodiesel in the U.S. and hinder the nation's efforts to utilize cleaner burning fuels."
 
In July, the Senate Finance Committee proposed extending the biodiesel blenders credit retroactively through 2015, and beginning in 2016 converting it to a producers credit.  NATSO opposes converting it to a producers credit and is actively encouraging lawmakers to pass a clean extension of the blenders credit through 2016.  You can help with this effort by urging your elected representatives to extend the biodiesel tax credit in its traditional form as a blender credit, rather than converting it to a producers credit.

 

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