US biodiesel industry testifies to Congress for tax credit extension

A representative from the US biodiesel industry has testified before the Ways and Means Subcommittee on the need to renew the biodiesel blender’s tax incentive through to at least 2018.

Cal Meyer, CEO of Ag Processing, was acting as witness for the National Biodiesel Board (of which Ag Processing is a member). As well as urging Congress to renew the blender’s credit, he advocated considering a ‘multi-year approach’.

“Doing so would drive new investment and establish market certainty for US farmers, ranchers, petroleum marketers, blenders and fuel retailers,” Meyer told the Ways and Means Subcommittee.

The subcommittee has been held to debate the future of tax extenders in the wake of recent, wide ranging US tax reforms. It heard from more than 20 witnesses over the course of four panels.

Echoing a letter addressed to the committee from the National Biodiesel Board earlier in the week, Meyer made the case that the existing biodiesel blender’s tax credit has helped expand domestic energy production in the US, created jobs, and delivered a host of other benefits such as adding value to the agriculture sector.

“I would like to emphasise that the biodiesel blender’s tax incentive has helped achieve the desired goal of expanding domestic production of American energy resources and jobs here at home. In turn, the increased use of biodiesel has helped the United States realize economic, global competitiveness, and environmental benefits,” Meyer explained in his testimony.

“The public policy benefits of the tax incentive are clear. These benefits, however, will be jeopardised without reinstatement of the biodiesel tax incentive.”