NACS, along with several other organizations, sent a letter this week to the House Ways and Means Committee urging Congress to extend the $1 per gallon Section 40A Biodiesel Blenders’ Tax Credit, which will ensure that the current uncertainty in the advanced biofuel industry does not result in higher fuel prices at the pump.
Biodiesel and renewable diesel are the most widely used biofuels in commercial trucking and “remain the most viable option for reducing carbon emissions from the nation’s trucking, home heating oil and rail industries,” the letter said. “Renewable diesel and biodiesel provide affordable, cleaner-burning fuel that reduces American dependence on foreign energy sources, stabilizes domestic fuel markets and enables consumers to purchase more competitively priced diesel fuel,” the letter stated.
Economists predict inflation could rise 2.5% in 2025, and NACS is advocating that restoring the Biodiesel Blenders’ Tax Credit is a concrete step that Congress can take to help mitigate inflationary threats that persist throughout the economy, including tariffs.
“The expiration of the Biodiesel Tax Credit at the end of 2024 has decimated biofuels supply chains. Many biofuel production facilities, particularly biodiesel plants, have scaled back or are shutting down entirely,” the organizations said in the letter. “Consumers should not have to incur unnecessary cost increases for everyday goods like food, medicine and other essential commodities if stability is not restored to biofuels markets through an extension of the Biodiesel Tax Credit.”
The Biodiesel Tax Credit directly lowers the cost of diesel fuel for truck drivers, which in turn reduces shipping costs and helps lower the prices consumers pay for goods transported by truck.
Other organizations that signed the letter include NATSO, representing America’s truck stops and travel centers; SIGMA: America’s Leading Fuel Marketers; American Trucking Associations (ATA); the Clean Freight Coalition (CFC); Energy Marketers of America (EMA); the National Energy & Fuels Institute (NEFI); and the Truckload Carriers Association (TCA).