Since being implemented in 2005, the biodiesel tax incentive has played a key role in stimulating growth in the U.S. biodiesel industry, helping it become the first EPA-designated Advanced Biofuel to reach commercial-scale production nationwide. By helping biodiesel compete on a more level playing field with petroleum, the $1-per-gallon tax credit creates jobs, strengthens U.S. energy security, reduces harmful and costly emissions, diversifies the fuels market, and ultimately lowers costs to the consumer. There is a clear correlation between the tax incentive and increased biodiesel production, which has grown from about 100 million gallons in 2005, when the tax incentive was first implemented, to almost 1.8 billion gallons in 2013.
However, unlike billions of dollars in petroleum tax incentives – which are written permanently into the tax code – the biodiesel tax incentive is fraught with uncertainty. It has expired three times in the past five years, including on Dec. 31, 2013. This has created significant disruptions in the industry. The annual threat of losing the tax incentive has stunted growth, limiting biodiesel producers’ access to capital and investment while restricting their ability to expand and hire new employees. With only about seven years of commercial-scale production, biodiesel remains a young and maturing industry that needs stable tax policy to continue meaningful growth.
The biodiesel industry is calling on Congress to quickly pass a multi-year extension of the tax incentive, and we are urging all biodiesel stakeholders to contact their elected officials in Congress to advocate on the industry’s behalf.
To reach your senators’ offices, call the Senate switchboard at 202- 224-3121 or visit the Senate website here. Unless you already have a contact at the office, ask to speak to the staffer who handles energy or tax issues.
To contact your U.S. Representative call the House switchboard at 202-225-3121 or visit the House website here.
Additionally, our Washington office is happy to send you a list of key legislative assistants for your lawmakers, along with their direct emails and phone numbers, to make sure you can get through. Feel free to call our Washington office at 202-737-8801 or email Ben Evans at firstname.lastname@example.org.
|Biodiesel Tax Policy Backgrounder – 2014||166.60 KB||Mar 24, 2014||Download|
|Senate Letter from Advanced Biofuels Groups re Tax Incentives||220.43 KB||Mar 24, 2014||Download|
|S.2021 – Cantwell-Grassley Biodiesel Tax Incentive Bill – 2014||265.08 KB||Feb 24, 2014||Download|
|S 1277 – Biodiesel Tax Incentive Reform and Extenion Act of 2011 (Cantwell – Grassley and Others)||185.96 KB||Mar 01, 2012||Download|
|HR 2238 – Schock – Peterson – Biodiesel Incentive Reform and Extension Act of 2011||186.20 KB||Mar 01, 2012||Download|
|Biodiesel Tax Incentive – Summary and Points of Emphasis||166.87 KB||Sep 16, 2013||Download|
|Tax Incentive Letter Regarding Retroactive 2012 Filing||16.93 KB||Feb 19, 2013||Download|