Biodiesel leaders push for producer’s tax credit, cite jobs and economic benefits

In Washington D.C., biodiesel industry leaders are meeting with key influencers to spotlight advanced US biofuels, with jobs and economic opportunities as the hot tickets.

“It’s simple. Biodiesel can continue to grow American jobs and prosperity in communities throughout the nation,” said Donnell Rehagen, CEO at the trade association National Biodiesel Board (NBB).

“Our members are making real investments and significant impacts across America, and they want to do more.”

The American biodiesel industry currently supports 64,000 jobs across the US, according to the NBB, many of which are the highest paying and most affluent jobs in the county or region.

“These aren’t just jobs, they’re great jobs. But American biodiesel will not reach its full potential under the current regulatory framework,” Rehagen said.

“Changes that ensure American tax dollars and American programmes support American production are just common sense,” he added.

NBB governing board and executive staff members will be meeting with key leaders to discuss reforming the biodiesel tax incentive as a domestic production credit.

The move would open the door for the industry to support 81,600 US jobs and $14.7 billion (€13.9bn) in total economic benefit, NBB said in a statement.  

Under the current “blender’s” structure of the incentive, foreign fuel imported and blended with petroleum diesel in the US is eligible for the tax incentive.

In 2016, importers brought in more than one billion gallons of fuel under the programme, making up nearly a third of the US market.

In addition to tax reform, the biodiesel leaders will push for additional growth in the Renewable Fuel Standard volume obligations.

Biodiesel producers have more than 1.5 billion gallons of unused production capacity that stands ready to be utilised, Rehagen said.

The US market used nearly 2.9 billion gallons of biodiesel and renewable diesel last year.