House Ways and Means Committee Chairman Richard Neal (D-MA) on June 11 discussed a proposal with members to extend a series of expired business tax benefits known as “extenders” that include the biodiesel tax credit.
Under the proposal, the extenders would be revived retroactively for 2018 and continued through 2019 and 2020. A mark-up could happen as early as the week of June 17.
Even if the measure is adopted by the House, however, it faces opposition in the Senate.
Chairman Neal wants to include the Earned Income Tax Credit, the Child Care Tax Credit and pay-fors, which are House Democratic priorities. Senator Grassley, Chairman of the Senate Finance Committee, only wants extenders and opposes the additional provisions.
Nonetheless, Congressman Neal’s proposal marks a positive step because House Democrats are endorsing extenders, which means negotiations will continue.
NATSO has been advocating for an extension of the biodiesel tax credit since it lapsed in 2018. Since 2005, the biodiesel tax credit has helped fuel retailers to sell biodiesel at a price that is cost competitive with gasoline and diesel, thereby advancing consumer consumption. Fuel retailers have struggled, however, amid market uncertainty created by the on and off again nature of the tax credit.
NATSO, along with its biofuels coalition, issued a statement thanking Chairman Neal for his proposal, calling it a good-faith effort to craft compromise legislation.
"On behalf of the coalition to support the extension of the biodiesel blenders tax credit and other biofuels tax provisions, we thank the Chairman of the House Ways and Means Committee for his proposal to extend these tax policies through 2020. A three-year extension is a welcome proposal that all of us support," the coalition said.
"These extender provisions affect the jobs of thousands of Americans who have been waiting 1-1/2 years for the extensions. The tax credits have a direct relationship to the amount of renewable fuels that are blended into our nation's supply of liquid transportation fuels and home heating oil and the amount of carbon reductions achieved as a result. We trust and depend on our institutions of government, both the House of Representatives and the Senate, to protect the jobs and livelihood of affected Americans.
"Although Chairman Neal's proposal may not be perfect, we are grateful for Chairman Neal's good-faith efforts to craft compromise legislation. The Neal proposal should be viewed as a helpful step in the right direction toward providing our industries the certainty they need to continue bringing advanced biofuels to market. We urge leaders in both the House and Senate to continue working toward an equitable compromise as soon as possible."
Signatories included NATSO, the Advanced Biofuels Association (ABFA), American Trucking Associations (ATA), National Association of Convenience Stores (NACS), the New England Fuel Institute, the Petroleum Marketers Association of America (PMAA), and the Society of Independent Gasoline Marketers of America (SIGMA).
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