NBB supports biodiesel tax incentives, calls for better support for domestic production
“Restoring this tax incentive will create jobs and economic activity at biodiesel plants across the country, so we want to thank leaders in the House and Senate for proposing this extension,” NBB Vice President of Federal Affairs Anne Steckel said. “Unfortunately, the impact would be muted because this proposal would continue allowing foreign biodiesel to qualify for the tax incentive. This not only costs taxpayers more money but it paves the way for foreign fuels that already receive incentives in their home countries to undercut U.S. production.”
The tax incentives as currently written apply to entities blending biodiesel fuels in the United States, which means that fuels produced overseas still qualify for tax credits. In the lead up to Congress’ decision on the credits, the NBB pushed for it to be changed to a producer’s incentive to further promote domestic biofuel development.
“We have yet to hear any member of Congress articulate why U.S. tax dollars should be used to support foreign production,” Steckel said. “Clearly, incentivizing predatory biodiesel imports was not the intent of Congress, so we will continue urging Congress to make this reform.”