NATSO Urges Congress to Leave Biodiesel Tax Credit Unchanged

NATSO joined five petroleum and biofuel trade groups in urging the House Ways and Means Committee to extend the biodiesel and renewable diesel tax credit in its traditional form as a blender credit, rather than converting it to a producers credit.   

In its letter, the groups said that "converting the tax credit to a producer's credit and denying its availability to imported fuels will benefit a small group of biodiesel producers and come at the expense of fuel retailers who have incurred significant costs to purchase and maintain the equipment to dispense blended fuels and at the expense of the nation's consumers who will pay higher prices for the shipment of goods."
 
The biodiesel blenders' credit has "successfully creat[ed] a market for biodiesel and renewable diesel and building consumer acceptance," the groups wrote. "Continuing the policy that allows truckers to share in the value of the credit and encourages acceptance of biofuels benefits American consumers, those who blend those fuels, and those who provide the feedstocks that make biofuels."
 
The Senate Finance Committee in July approved legislation that would reinstate the biodiesel blenders credit retroactively to the beginning of 2015, but shift the biodiesel tax credit upstream to producers beginning in 2016.  NATSO has been a leading voice in Washington opposing this policy shift, arguing that it would fundamentally alter blending economics and increase the price of diesel fuel with no offsetting benefits. Instead, NATSO has urged lawmakers to support a retroactive clean extension of the blenders' tax credit, and also to extend the credit for at least 2016 as well to enable blenders and fuel retailers to adequately plan.
 
The full Senate has not yet considered the tax extenders legislation, nor has the House Ways and Means Committee. Once the House committee begins to focus on tax extenders legislation -- likely toward the end of this year -- the two chambers will have to reconcile their respective measures. 
 
Before Congress takes up the legislation, NATSO is asking its members to contact their elected officials and urge them to extend the biodiesel and renewable diesel tax credit in its traditional form as a blender credit, rather than converting it to a producers credit.   
 
 
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 direct's 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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