The Senate Finance Committee is scheduled July 21 to mark up a package of individual and business tax provisions known as tax extenders that would revive some 50 expired tax breaks, including the $1 per-gallon biodiesel tax credit.
NATSO joined a group of petroleum retailers and marketers in urging members of the Senate Finance Committee to extend the $1 per-gallon biodiesel tax credit but also expressed concern with an amendment that would move the biodiesel tax credit upstream to producers.
In a letter sent to Senate Finance Committee Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.), the trade groups urged Congress to include a multi-year, retroactive “clean” extension of the $1-per-gallon biodiesel tax credit arguing that it would foster favorable blending economics and promote biodiesel consumption by enabling fuel marketers to offer consumers more competitive prices.
“Providing a tax credit for biodiesel blenders promotes biodiesel consumption in the United States,” the trade groups wrote. “The Environmental Protection Agency (EPA) has indicated that having the biodiesel blenders tax credit in place leads to additional demand for biodiesel, which in turn enables EPA to effectively implement the Renewable Fuel Standard (RFS) in the manner that Congress intended. Changing this credit could compromise the value to the consumer and unnecessarily disrupt the biodiesel marketplace.”
Signatories included NATSO, the Petroleum Marketers Association of America (PMAA), Society of Independent Gasoline Marketers of America (SIGMA), National Association of Convenience Stores (NACS) and the Advanced Biofuels Association (ABFA).
Senator Hatch on July 17 released draft legislation that would revive some 50 expired tax breaks. In addition to the biodiesel tax credit, the package includes a 30 percent investment tax credit for alternative fuel pumps, a provision that enables small business to deduct certain property expenses from their taxes known as Section 179 expensing as well as bonus depreciation provisions. The measure also seeks to extend the $.50 per gallon alternative fuel tax credit and alternative fuel mixture tax credit.
Senator Hatch may add the tax extenders package to the highway funding proposal aimed at shoring up the Highway Trust Fund before it expires July 31.
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