Legislation introduced to extend biodiesel tax credit

On Wednesday, U.S. Rep. Mike Carey (R-OH) introduced legislation that would extend tax incentives to encourage the use of biodiesel.

The bipartisan legislation was co-sponsored by U.S. Reps. Annie Kuster (D-NH), Mariannette Miller-Meeks (R-IA), and Claudia Tenney (R-NY).

“Biodiesel is a homegrown resource that can support our long-term energy independence and support farmers, producers and energy workers right here in Ohio,” Carey said. “With America’s energy dominance in at stake, we’re working across the aisle to strengthen our supply of biodiesel for the years to come.”

The biodiesel tax credit refers to a 1986 group of incentives included in Section 40A(g) of the Internal Revenue Code, and the legislation would extend the tax incentives through 2025. Advocates said the tax credits are essential in getting the country to efficient and competitive alternatives to traditional diesel and play a critical role in accelerating the country’s transition to a clean, carbon-neutral economy. Additionally, the tax credits support jobs and the economy, advocates said.

The legislation is supported a number of advocacy organizations including NATSO, Representing America’s Travel Centers and Truck Stops; SIGMA: America’s Leading Fuel Marketers; the National Association of Convenience Stores; the American Trucking Associations; the Truckload Carriers Association; the Energy Marketers of America; Small Advanced Biofuel Refiners, and the National Energy and Fuel Institute.

“Renewable diesel and biodiesel represent a vital component of any sound strategy for lowering transportation sector emissions. Trucks are harder and more expensive to electrify than cars, and while we pursue aspirational goals we still must capitalize on economically viable solutions that help us lower emissions today,” David Fialkov, Executive Vice President of Government Affairs for NATSO and SIGMA, said. “We commend [Lawmakers] for recognizing the critical role that renewable diesel and biodiesel play in lower fuel costs for consumers by extending the Biodiesel Tax Credit at the blenders’ level. We urge Congress to extend this successful policy as soon as possible.”

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