Calls for Ways and Means Committee to extend biodiesel tax credit ‘ASAP’

Stakeholders in the US biodiesel industry have called for the biodiesel tax credit to be extended until 2018 “as soon as possible”.

The call comes in a letter from the US National Biodiesel Board, addressed to a range of high-ranking US politicians including Speaker of the House Paul Ryan, Democrat House Leader Nancy Pelosi and Majority Leader Mitch McConnell.

“Tens of thousands of American workers and manufacturers—as well as the millions of Americans who benefit from cleaner air and water—are depending on you to help grow the [biodiesel] industry with the tax credit,” the letter states.

Signatories of the letter represent a multitude of companies from ‘all segments’ of the biomass based diesel supply chain, including production, blending, distribution, and marketing.

The timing of the letter is significant. Sent on 13 March, it came just a day before the House of Representatives Committee on Ways and Means was set to hold a hearing on post tax reform evaluation of recently expired tax provisions.

“The uncertainty created by the lapse of the tax credit is curtailing investments in new plants and capital projects to maintain, improve and expand existing plants,” the letter states.

“We believe that if the tax credit is extended through at least 2018, the biodiesel industry would experience substantial growth in the near term, which would create significant new employment opportunities.”

On 9 February, retroactive tax credits for the biofuels sector were passed with Congress’ deal to reverse the Federal Shutdown.