A coalition of eight organizations recently sent a letter to the House Ways and Means Committee urging Congress to extend the Section 40A Biodiesel Blenders’ Tax Credit.
The Biodiesel Blenders’ Tax Credit provides a $1 per gallon tax credit for the purchase of biofuel. It was introduced in 2004 and expired last year.
“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 letter said. “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.”
In 2005, the U.S. biodiesel and renewable diesel market provided approximately 100 million gallons. By 2023, it had expanded to approximately 4 billion gallons. During the same timeframe, carbon emissions from transportation decreased.
The organizations signing the letter are American Trucking Associations, the Clean Freight Coalition, Energy Marketers of America, the National Association of Convenience Stores, the National Association of Truckstop Operators, the National Energy & Fuels Institute, SIGMA: America’s Leading Fuel Marketers, and the Truckload Carriers Association.