The National Biodiesel Board (NBB) today thanked Rep. Abby Finkenauer (D-IA), Rep. Mike Kelly (R-PA), Rep. Ron Kind (D-WI) and Rep. Adrian Smith (R-NE) for introducing bipartisan legislation that would provide a two-year extension of the biodiesel and renewable diesel tax incentive. The Biodiesel Tax Credit Extension Act of 2019 (HR 2089) would provide certainty for 2018 and 2019 to biodiesel producers and their employees. The legislation is co-sponsored by Reps. Angie Craig (D-MN), Cheri Bustos (D-IL), Cindy Axne (D-IA), Danny K. Davis (D-IL), Darin LaHood (R-IL), Dave Loebsack (D-IA), Jackie Walorski (R-IN), Rosa DeLauro (D-CT), Bill Pascrell (D-NJ, and John Larson (D-CT).
“NBB and its members are grateful to Representatives Finkenauer, Kelly, Kind and Smith for their leadership to extend the expired biodiesel tax incentive,” Kurt Kovarik, NBB’s Vice President of Federal Affairs, said. “We continue to appreciate the strong bipartisan support in Congress for biodiesel and renewable diesel industry workers.
“Biodiesel companies and their employees are facing an uncertain future because the biodiesel tax incentive has been expired for 15 months. The economic pressure is threatening the future of the industry, putting good-paying, blue-collar jobs and production of a low-carbon, domestic fuel at stake. It is adding economic pressure to farmers who have been hit from both sides by unfavorable weather and trade disputes. If enacted swiftly, this bill will provide the agricultural economy some certainty and relief for 2018 and 2019.”
The House legislative language mirrors the biodiesel tax incentive provision in Senate legislation introduced by Sen. Chuck Grassley (R-IA), chairman, and Sen. Ron Wyden (D-OR), ranking member of the Senate Finance Committee. The Senate legislation (S.617) would provide a two-year extension of expired temporary tax incentives, including the biodiesel and renewable diesel tax incentive.
With plants in nearly every state, the U.S. biodiesel and renewable diesel industry supports more than 60,000 jobs, paying more than $2.5 billion in annual wages and generating more than $11 billion in economic impact. Every 100 million gallons of biodiesel production supports 3,200 jobs.
The U.S. biodiesel market has grown from about 100 million gallons in 2005, when the tax incentive was first implemented, to more than 2.6 billion gallons annually since 2016. The biodiesel tax incentive helps producers across the country continue to invest in capacity for future growth.