Biodiesel industry seeks tax incentive extension
A group of biodiesel industry supporters sent a letter to Congress Tuesday urging lawmakers to take immediate action to retroactively reinstate the biodiesel tax incentive.
“If extension of this effective incentive continues to languish, we risk losing the significant job creation, energy security and environmental benefits associated with the domestic production and use of biodiesel,” warned Manning Feraci, vice president of federal affairs for the National Biodiesel Board, in a statement.
The biodiesel tax incentive expired on Dec. 31. It’s structured in a manner that makes biodiesel price competitive with conventional diesel fuel in the market. The lapse of the tax incentive has caused severe retraction in the domestic production and use of biodiesel.
About 1.9 billion gallons of biodiesel have been produced in the United States since the tax incentive’s enactment in 2004.
The groups to sign the letter include the National Biodiesel Board, Petroleum Marketers Association of America, NATSO, Society of Independent Gas Marketers of America, New England Fuel Institute, American Soybean Association, National Farmers Union, and American Farm Bureau Federation.