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.
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