House passes biodiesel tax credit

Posted June 1, 2010

Last week was a turbulent one for those in the biodiesel industry as reissuance of the federal 1$ per gallon tax credit, or at least a Congressional vote, was anticipated by many.

As the week began the House was expected to vote on the American Jobs and Closing Tax Loopholes Act (H.R. 4213) early in the week, leaving time for the Senate to act on the legislation before the Memorial Day recess.

As the Friday morning leading up to the holiday passed, and as it looked as if the measure wouldn't even see a House vote until after the break, representatives took up the measure in the afternoon and passed H.R. 4213.

"The National Biodiesel Board is pleased that the House has finally passed the biodiesel tax credit," stated Manning Feraci, vice president of federal affairs. "Since the tax incentive's inception six years ago, the biodiesel industry has created tens of thousands of green jobs, added $4.1 billion to the nation's GDP and generated $828 million in tax revenue for federal, state and local governments. However, since the incentive has lapsed the industry has shed thousands of jobs, shuttered plants and is struggling to survive. Timely reinstatement of biodiesel tax incentive will undoubtedly reverse this troubling trend and allow the industry to create over 12,000 new jobs in this year alone."

Biodiesel is the only domestically produced, commercial scale advanced biofuel that is readily available and accepted in the marketplace. The biodiesel tax incentive makes biodiesel price competitive with the diesel fuel produced by petroleum companies-an industry that has received billions of dollars in taxpayer support over the previous decades.

"There are compelling economic, energy security and environmental benefits associated with displacing petroleum with clean-burning, domestically produced biodiesel," Feraci said. "Common sense dictates that the Senate should act swiftly upon their return from the Memorial Day recess and extend this effective public policy."