NATSO on Sept. 19 applauded Rep. Diane Black (R-Tenn.) for introducing legislation that would extend the biodiesel blenders’ tax credit for two years through 2018.
Rep. Black on Sept. 13 introduced the “Biodiesel and Renewable Diesel Incentive Extension Act of 2016” (H.R. 5994), which will help fuel retailers continue to sell biodiesel at a price that is cost competitive with gasoline and diesel, thereby advancing consumer consumption.
The tax credit is set to expire at the end of 2016 unless Congress acts to extend it.
“We commend Rep. Black for introducing legislation that will renew this critical tax credit,” said NATSO Vice President of Government Affairs David Fialkov. “Renewing the biodiesel blenders’ tax credit is the right decision for both fuel retailers and the American people. Without a blenders’ credit, fuel prices across the country will inevitably increase, which in turn would increase the costs of shipping while driving customers away from cleaner burning fuels. By extending the biodiesel tax credit, fuel marketers will be able to increase the volume of cleaner-burning fuels in the United States while simultaneously offering customers a lower price. It's a win-win for everybody.”
The Advanced Biofuels Association (ABFA) joined NATSO in commending Rep. Black, saying this provision would continue to protect those who are investing in the blending equipment and are selling all the fuel in the United States, specifically the small producers, users of biodiesel and renewable diesel and the distributors.
Since 2005, the $1.00 per gallon biodiesel blenders’ tax credit has helped fuel retailers to sell biodiesel at price that is cost competitive with gasoline and diesel, thereby advancing consumer consumption.
Failure by Congress to renew the tax credit, or converting the tax credit from a blenders' credit to a producers' 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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