Six trade organizations recently praised U.S. Reps. Diane Black (R-TN) and Ron Kind (D-WI) for introducing the biodiesel blenders’ tax credit extension bill.
The most recent credit expired nearly eight months ago. First established in 2005, the credit helps fuel-retailers sell biodiesel at a competitive rate.
Under the new bill, the credit would be implemented over the course of five years. In 2017 and 2018, the credit would be $1 per gallon. It would fall to $.75 in 2019, to $.50 in 2020 and to nothing in 2022.
“The five-year phase-out contained in this legislation—which mirrors policy that has been enacted for other alternative energy sources such as wind and solar—is designed to provide much-needed policy certainty to the market,” National Association of Truck Stop Operators (NATSO) CEO Lisa Mullings said. “The phase-out is also compatible with congressional efforts to reform and simplify the tax code.”
In addition, customers will have access to cleaner burning fuel, Mullings said.
The other trade groups joining NATSO in their praise are Advanced Biofuels Association, the American Trucking Associations, the National Association of Convenience Stores, the Petroleum Marketers Association of America and the Society of Independent Gasoline Marketers of America.
These organizations oppose a producers’ tax credit.