In the United States (US), Rep. Mike Thompson (D-CA), chairman of the House Ways and Means Subcommittee on Select Revenue Measures, released a wide-ranging proposal to incentivize renewable energy and energy efficiency on November 19, 2019. "We appreciate the recognition – through this proposed long-term extension – that the biodiesel industry is integral to our domestic energy needs," commented Kurt Kovarik, Vice President of Federal Affairs with the National Biodiesel Board (NBB).
In a statement, the National Biodiesel Board (NBB) welcomes the proposal (Sec. 201) for a multi-year extension of the biodiesel tax incentive; it would keep the credit at its current rate of US$1.00 per (US) gallon (≈ 3.785 litres) for 2018 through 2021 but gradually reduce it to US$0.33 per gallon by 2024.
The biodiesel industry has long advocated for a long-term tax extension to provide certainty and predictably for producers and feedstock providers. Too often, the credit has been allowed to lapse and then be reinstated retroactively, which does not provide the certainty businesses need to plan, invest, and create jobs. Since the start of the year, 10 biodiesel plants have been forced to cut production or close and lay off workers due to policy uncertainty. The biodiesel industry needs an immediate multiyear extension of the tax incentive – at a minimum for 2018, 2019 and 2020 – to stem the losses. We appreciate the recognition – through this proposed long-term extension – that the biodiesel industry is integral to our domestic energy needs. We look forward to working with our supporters on Capitol Hill to ensure that consumers, producers, and marketers benefit from a long-term, forward-looking pro-growth tax policy, said Kurt Kovarik, Vice President of Federal Affairs with the NBB.
