Biodiesel tax credit extension, phaseout proposed in US House

November 27, 2018

BY The National Biodiesel Board

Chairman of the House ways and means committee Rep. Kevin Brady, R-Texas, released a proposal Nov. 26 to make technical corrections to the Tax Cuts and Jobs Act (PL 115-97) and to extend several expired tax credits, including the biodiesel and renewable diesel tax incentive. The National Biodiesel Board welcomed the proposal for a multiyear extension of this important incentive, which would keep the credit at its current rate of $1 per gallon for 2018 through 2021 but gradually reduce it to 33 cents per gallon by 2024 and then allow it to expire.

“The biodiesel industry has long advocated for a long-term tax extension to provide certainty and predictably for producers and feedstock providers,” said Kurt Kovarik, vice president of federal affairs with the NBB. “Too often, the credit has been allowed to lapse and then reinstated retroactively, which does not provide the certainty businesses need to plan, invest, and create jobs. We appreciate the recognition that the biodiesel industry is integral to our domestic energy needs through this long-term extension. We look forward to working with our supporters on Capitol Hill to ensure that consumers, producers and marketers benefit from a long-term, forward-looking pro-growth tax policy.”  

Advertisement

 

Advertisement

Related Stories

The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 RFS RVOs. Members of the biofuel industry were among those to offer testimony during the event.

Read More

The USDA’s Risk Management Agency is implementing multiple changes to the Camelina pilot insurance program for the 2026 and succeeding crop years. The changes will expand coverage options and provide greater flexibility for producers.

Read More

President Trump on July 4 signed the “One Big Beautiful Bill Act.” The legislation extends and updates the 45Z credit and revives a tax credit benefiting small biodiesel producers but repeals several other bioenergy-related tax incentives.

Read More

CARB on June 27 announced amendments to the state’s LCFS regulations will take effect beginning on July 1. The amended regulations were approved by the agency in November 2024, but implementation was delayed due to regulatory clarity issues.

Read More

SAF Magazine and the Commercial Aviation Alternative Fuels Initiative announced the preliminary agenda for the North American SAF Conference and Expo, being held Sept. 22-24 at the Minneapolis Convention Center in Minneapolis, Minnesota.

Read More

Upcoming Events

Sign up for our e-newsletter!

Advertisement

Advertisement