U.S. Senators Push to Extend Biodiesel Tax Credit

Bill seeks to reform the tax credit, increasing it from $1 to $1.10, as well as extend it by three years.

February 18, 2014

WASHINGTON – A bipartisan pair of senators have introduced a bill to extend the $1-a-gallon biodiesel tax credit, E&E reports.

S. 2021, introduced by Sens. Maria Cantwell (D-WA) and Chuck Grassley (R-IA), would renew the biodiesel credit as of Jan. 1, 2014, through  Dec. 31, 2017. The senators have introduced similar legislation in the past at the request of the National Biodiesel Board, but it failed to advance. SIGMA, PMAA and NATSO opposed previous efforts by Cantwell and Grassley. 

NATSO supports extending the $1-per-gallon biodiesel tax credit, but opposes moving the tax credit to the biodiesel producer level where there are no guarantees that the tax credit will be passed on to blenders and consumers, the group communicated to its members. 

NATSO also believes the tax credit should remain at the blender level, applied as biodiesel is blended into diesel for use in transportation, rather than as a production subsidy. NATSO is also concerned about the legislation potentially allowing the tax credit to be claimed on biodiesel shipped outside of the United States. 

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