BIODIESEL BLENDER’S TAX CREDIT
The Petroleum Marketers Association of America’s (PMAA) member companies blend biodiesel into on-road diesel and home heating oil to help facilitate the renewable fuel blending requirements established under the Renewable Fuel Standard (RFS). Since 2005, there has been a $1.00 per gallon biodiesel and renewable diesel blenders’ tax credit which was created to stimulate production and consumption of biodiesel and renewable diesel. The biodiesel blender’s credit has worked successfully to build a strong incentive for downstream fuel marketers to blend renewable fuel into the fuel supply which has lowered prices for motor and heating fuels for consumers.
As a result, the U.S. biodiesel and renewable diesel market has grown from roughly 100 million gallons in 2005 to nearly 2.6 billion gallons in 2017. The tax credit is an important demand stimulus, which improves plant efficiencies, encourages investment in U.S. distribution infrastructure, and supports high-paying jobs throughout the country, all while incentivizing consumption of fuels that significantly reduce greenhouse gas emissions.
Unfortunately, the tax credit expired on December 31, 2017 and has been in limbo since. Congress must act now to retroactively extend the credit for calendar year 2018 and through at least 2019.
BIODIESEL TAX CREDIT LEGISLATION
Recently, Senate Finance Committee Chairman Chuck Grassley (R-IA) and Ranking Member Ron Wyden (D-OR) introduced legislation to retroactively extend the $1 per gallon biodiesel tax credit through 2019. Additionally, Rep. Abby Finkenauer (D-IA) introduced bipartisan legislation (H.R. 2089) known as the “Biodiesel Tax Credit Extension Act,” which would extend the biodiesel blender’s tax credit for 2018 and 2019. PMAA supports these bills.
“THE ASK” Committees: House Ways and Means; Senate Finance Committee
Urge Congress to pass a multi-year extension of the biodiesel blender’s tax credit.