Congress Passes Tax Extenders Legislation, Including Biodiesel Blenders Credit

Congress passed a tax extenders package that contains a clean, two-year extension of the biodiesel blenders credit (retroactive to Jan. 1, 2015). This is a significant victory for NATSO and the fuel marketing community.  After months of intense advocacy efforts opposing a shift from a blender credit to a producer credit, Congress ultimately agreed with NATSO that a blenders credit is better for consumers and the best way to encourage domestic consumption of biodiesel.

Thank you to all NATSO members who contacted your elected representatives this year -- the effort has paid off.  In addition to the blenders credit, the legislation also extends a variety of other tax provisions, many of which are important to truckstop and travel plaza operators:

  • Increased expensing limits under Section 179 (allowing businesses to expense certain property as a current expense rather than a capital expense) has been made a permanent part of the tax code. The increased limits are also indexed to inflation beginning in 2016.
  • Two-year extension (through 2016) of the 50 cents per gallon alternative fuel tax credit and alternative fuel mixture tax credit (applicable to sales of LNG and CNG, among other fuels). The bill further converts the measurement of the credit for LNG from 50 cents per gallon to 50 cents per energy equivalent of a gallon of diesel fuel, which is about 29 cents per gallon for LNG (effective for fuel sold or used after 2015). 
  • Five-year extension of bonus depreciation -- For property placed in service in 2015, 2016, or 2017, the bonus depreciation percentage is 50 percent; in 2018 it is 40 percent and in 2019 it is 30 percent. 
  • Five-year extension of the work opportunity tax credit (WOTC), providing a credit against federal income tax liabilities for employers who hire individuals from certain targeted groups, such as unemployed veterans and recipients of certain government assistance programs. 
David Fialkov's photo

David Fialkov

David Fialkov is the Vice President of Government Relations, as well as the Legislative and Regulatory Counsel, at NATSO. In this capacity, Mr. Fialkov directs NATSO's legislative, regulatory, and legal strategy on a range of issues, including transportation, energy and fuels, labor, data security, and taxes. Mr. Fialkov also oversees NATSO's political engagement program, including individualized legal and political counsel to member companies. Prior to joining NATSO, Mr. Fialkov was the senior associate in the Government Affairs and Public Policy practice at the law firm of Steptoe and Johnson in Washington, D.C. At Steptoe, Mr. Fialkov advised clients on legislative, regulatory, and political issues, as well as legal concerns. His primary clients included trade associations representing the motor fuel wholesale and retail industries, including the National Association of Convenience Stores and the Society of Independent Gasoline Marketers of America. Mr. Fialkov's focus was not only on the motor fuels business, but also the litany of other issues that retailers confront, including labor matters, foodservice issues, healthcare and employment issues, tax matters and data security. Prior to joining Steptoe, Mr. Fialkov graduated with honors from George Washington University Law School. He received his B.S. Summa cum laude with highest honors from Clark University in Worcester, MA. He lives in Washington, D.C. with his wife Allison and daughter Lilah. More
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