NATSO Opposes Biodiesel Production Tax Credit

NATSO opposes legislation introduced by Senators Maria Cantwell (D-Wash.) and Charles Grassley (R-Iowa) to move the biodiesel tax credit away from blenders to biodiesel producers. 

The senators have introduced S. 2021, would would allow producers, rather than blenders, to claim the  biodiesel credit beginning  Jan. 1, 2014, through  Dec. 31, 2017. The senators have introduced similar legislation in the past at the request of the National Biodiesel Board, but it failed to advance.

NATSO supports extending the $1-per-gallon biodiesel tax credit, but opposes moving the tax credit to the biodiesel producer level where there are no guarantees that the tax credit will be passed on to blenders and consumers.  

NATSO believes the tax credit should remain at the blender level, applied as biodiesel is blended into diesel for use in transportation, rather than as a production subsidy. NATSO is also concerned about the legislation potentially allowing the tax credit to be claimed on biodiesel shipped outside of the U.S.

NATSO continues to call for a clean extension of the biodiesel blenders' tax credit.



Holly Alfano's photo

Holly Alfano

Holly Alfano joined NATSO in April 2007, and represents the association’s interests on Capitol Hill covering petroleum, transportation and tax issues. Before joining NATSO, Alfano had worked on behalf of the petroleum industry for 16 years, first as executive director of the Louisiana Oil Marketers and Convenience Store Association, and then as vice president of the Petroleum Marketers Association of America. More

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