Interest groups want biofuels tax incentives extended prior to US midterm elections
The National Biodiesel Board (NBB) and the Advanced Biofuels Association (ABFA), in a joint letter to the US Senate Democratic and Republican Leadership, today urged the chamber to retroactively extend the biodiesel, renewable diesel, and alternative fuels tax credits through 2011 before adjourning for the upcoming midterm elections.
“The lapse of the biodiesel tax incentive and the Senate’s subsequent inability to address this issue has killed thousands of jobs and has made America more dependent on foreign oil,” said Manning Feraci, NBB’s vice president of federal affairs. “Before the Senate goes home to campaign, it should do the right thing and seamlessly reinstate the biodiesel tax incentive.”
The Internal Revenue Code provides a one dollar per gallon tax incentive for biodiesel and renewable diesel. Both biodiesel and renewable diesel are required by statute to meet specific fuel quality standards to qualify for their respective tax incentives. In addition, the Code provides a 50 cents per gallon tax credit for alternative fuels that displace petroleum in various applications but do not meet the quality specifications required by statute to claim either the biodiesel or renewable diesel tax incentive.
According to NBB and ABFA, the lapse of these tax incentives on December 31, 2009, and Congress’ inability to enact legislation extending these incentives has significantly harmed biofuels producers and has caused instability in the marketplace.
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