NATSO on June 25 along with all major associations representing the biodiesel supply chain united in urging House and Senate Leaders and the two key tax writing committees to extend the $1 per gallon biodiesel blender’s tax credit as well as to seek a permanent tax incentive that will help foster growth in the domestic biodiesel market.
The letter – signed by the National Biodiesel Board, the American Trucking Associations and all fuel retail groups, including NATSO, the National Association of Convenience Stories, Petroleum Marketers Association of America, and the Society of Independent Gasoline Marketers of America -- demonstrates to Congress that the industry is unified in support of extending the biodiesel blenders’ tax credit. It marks the first time that the diverse retailing community of biodiesel producers, feedstock providers, blenders, fuel marketers and consumers have united about maintaining and extending the biodiesel tax credit at the blender level.
The biodiesel supply chain is united in the belief that it is vital that Congress reinstate the biodiesel tax credit to ensure a healthy biodiesel market that allows the fuels sector to invest in alternative fuels and offer them to the public at the lowest possible cost.
NATSO has spent more than a year telling lawmakers that extending the biodiesel blenders’ tax credit is good for consumers, fuel retailers and biodiesel producers.
The National Biodiesel Board in recent weeks formally changed its position on the federal $1 per gallon biodiesel tax credit, dropping a push to convert the credit to a producer credit and supporting the current status as a blender credit.
In the letter, the groups said that the biodiesel blender’s tax credit serves as an important demand stimulus, which improves plant efficiencies, encourages investment in U.S. distribution infrastructure and supports high-paying jobs throughout the U.S.
Uncertainty caused by the on-again, off-again nature of the tax credit, however, has hindered the industry’s ability to make necessary investments as well as disrupted access to capital and the ability to hire and expand.
Since 2005, the $1.00 per gallon biodiesel blenders’ tax credit has helped fuel retailers to sell biodiesel at a price that is cost competitive with gasoline and diesel, thereby advancing consumer consumption. Failure by Congress to renew the tax credit would drive up biodiesel prices to a degree that would diminish consumer interest in the product, ultimately hindering U.S. efforts to advance the utilization of cleaner burning fuels.
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