WASHINGTON, D.C. – Today, the National Biodiesel Board (NBB) and more than 50 member companies and affiliated organizations delivered a letter to House and Senate leaders, urging them to enact a multiyear extension of the biodiesel and renewable diesel tax incentive before Congress adjourns for the year. In February 2018, Congress retroactively extended the tax incentive for 2017, leaving it expired for this year and beyond. The letter welcomes a recent proposal for a seven-year extension of the tax incentive.
In the letter, the biodiesel industry stakeholders state, “We believe that a multiyear extension of the tax incentive would help the biodiesel industry achieve substantial growth over the next several years, creating significant new employment opportunities, an important market for agricultural products and renewable feedstocks, as well as opportunities for rural economic growth.”
The U.S. biodiesel and renewable diesel market has grown from about 100 million gallons in 2005, when the incentive was first implemented, to nearly 2.9 billion gallons in 2016.
Kurt Kovarik, Vice President of Federal Affairs with the National Biodiesel Board, added, “The biodiesel industry has long advocated for a multiyear extension of the tax incentive. Congress can provide the certainty and predictability for producers and feedstock providers that will help us achieve our potential. Because the incentive is currently expired, it is urgent that Congress act before the end of the year.”
Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines without modification. It is the nation’s first domestically produced, commercially available advanced biofuel. NBB is the U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers, and fuel distributors, as well as the U.S. renewable diesel industry.