Key House Committee Extends Biodiesel Tax Incentive
Blenders Tax Incentive Will Continue Adding Renewable Fuel Supply to U.S.
WASHINGTON, D.C.– The U.S. biodiesel industry today applauded the U.S. House Ways and Means Committee for approving H.R. 6049, the Energy and Tax Extenders Act of 2008. Among its many provisions, the legislation extends the biodiesel tax incentive, which is a top priority for the biodiesel industry.
"I would like to thank Chairman Rangel and the members of the Ways and Means Committee for extending and improving the biodiesel tax incentive," said Joe Jobe, CEO of the National Biodiesel Board (NBB). "The biodiesel tax incentive is working, and the committee's decision to support biodiesel will help our industry improve America's energy independence by displacing foreign petroleum with clean-burning, domestically produced fuel."
H.R. 6049 contains the following provisions pertaining to biodiesel:
- Extends biodiesel tax incentive for one year through Dec. 31, 2009.
- Provides $1 per gallon incentive for all biodiesel regardless of feedstock.
- Shuts down the abusive "splash and dash" loophole that currently allows foreign-produced fuel to enter the U.S, claim the biodiesel tax incentive, and be shipped to a third country for end use.
- Properly defines tax benefits available to co-processed renewable diesel.
The U.S. biodiesel industry stands ready to play a key role in the effort to reduce America's dependence on foreign oil. In 2007 alone, biodiesel displaced 20 million barrels of petroleum. Biodiesel is also a clean burning fuel that reduces carbon lifecycle emissions by 78%, the equivalent of removing 700,000 cars from the nation’s roadways. Lastly, biodiesel production creates jobs and economic opportunity. The biodiesel industry supported 21,803 jobs and added over $4 billion to the national economy in 2007.
The NBB is the national trade association of the biodiesel industry and is the coordinating body for biodiesel research and development in the U.S. Its membership is comprised of biodiesel producers, state, national, and international feedstock and feedstock processor organizations, fuel marketers and distributors, and technology providers.
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For more details on biodiesel, visit biodiesel.org.
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