US Representative introduces Act to extend biodiesel blenders’ tax credit

Diane Black, member of the US House of Representatives (R-Tenn.), has an act that would extend the biodiesel blenders' tax credit for two years through 2018.

The tax credit is set to expire at the end of 2016 unless Congress decides to extend it through Black’s Biodiesel and Renewable Diesel Incentive Extension Act of 2016 (H.R. 5994).

Since 2005, the $1.00 per gallon biodiesel blenders' tax credit has aided fuel retailers in selling biodiesel at a price that is cost competitive with petrol and diesel, thereby advancing consumer consumption.

The biodiesel industry fears that should Congress fail to renew the tax credit or convert it from a blenders' credit to a producers' credit, biodiesel prices would rise to a degree that would diminish consumer interest in the product.

This would ultimately hinderg US efforts to advance the utilization of cleaner burning fuels.

NATSO, the national association representing US travel plazas and truck stops, commends Rep. Black for introducing the legislation.

"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," said NATSO VP of government affairs David Fialkov.

“By extending the biodiesel tax credit, fuel marketers will be able to increase the volume of cleaner-burning fuels in the US while simultaneously offering customers a lower price. It's a win-win for everybody," he added.

NATSO, founded in 1960, is the professional association of the US travel plaza and truck stop industry that represents it on legislative and regulatory matters.