December 17, 2010
President Obama Signs Bill Extending Biodiesel Tax Incentive Into Law
President Barack Obama today signed H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The legislation, among its provisions, retroactively extends the biodiesel tax incentive through 2011.
“Experience has shown that the biodiesel tax incentive is an effective tool to encourage the displacement of foreign petroleum with a superior, domestically produced Advanced Biofuel,” said Joe Jobe, National Biodiesel Board CEO. “Reinstatement of this proven incentive helps provide the policy framework needed to meet the nation’s renewable goals, and the NBB sincerely appreciates the bipartisan cooperation and support that made extension of this worthwhile incentive possible.”
Biodiesel is a commercially viable, renewable, low carbon diesel replacement fuel that is widely accepted in the marketplace. The fuel meets an exact commercial fuel specification (ASTM D6751) and is the only domestically produced, commercial scale fuel that qualifies as an Advanced Biofuel under the Renewable Fuels Standard.
The biodiesel tax incentive is structured in a manner that makes the fuel price competitive with conventional diesel fuel in the marketplace. The lapse of the tax incentive on December 31, 2009 has had a detrimental impact on the domestic biodiesel industry. Conversely, retroactive reinstatement and extension of the tax incentive through 2011, as provided for in H.R. 4853, is widely expected to increase U.S. biodiesel production and in the process, displace foreign petroleum with a domestic Advanced Biofuel.
“The NBB has every confidence that our membership is ready, willing and able to meet the nation’s Advanced Biofuel goals in 2011,” concluded Jobe. 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. NBB’s membership is comprised of state, national, and international feedstock and feedstock processor organizations, biodiesel suppliers, fuel marketers and distributors, and technology providers.
December 16, 2010
The Biodiesel Tax Incentive has passed both the US Senate and House of Representatives and is on its way to President Obama for signature. Please thank your Senators and Representatives for passing this very important tax legislation, and for their support of biodiesel.
President Obama Expected to Sign Bill Reinstating Biodiesel Tax Incentive on Friday, December 17, 2010
The U.S. House of Representatives (“House”) today voted by a 277 to 148 margin to approve H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The legislation, which reflects the framework of the tax agreement reached by President Obama and Congress, retroactively extends the biodiesel tax incentive through 2011. The bill will now be sent to the President for signature.
“Reinstatement of the biodiesel tax credit is welcome news for the U.S. biodiesel industry and good news for the nation as a whole,” said Manning Feraci, NBB Vice President of Federal Affairs. “This will undoubtedly help kick-start the domestic biodiesel industry, lessen our dependence on foreign oil, and create thousands of new jobs across the country.”
Biodiesel is a commercially viable, renewable, low carbon diesel replacement fuel that is widely accepted in the marketplace. The fuel meets an exact commercial fuel specification (ASTM D6751) and is the only domestically produced, commercial scale fuel that qualifies as an Advanced Biofuel under the Renewable Fuels Standard.
The biodiesel tax incentive is structured in a manner that makes the fuel price competitive with conventional diesel fuel in the marketplace. The lapse of the tax incentive on December 31, 2009 has had a detrimental impact on the domestic biodiesel industry. Conversely, retroactive reinstatement and extension of the tax incentive through 2011, as provided for in the tax bill approved by the U.S. Senate, is widely expected to increase U.S. biodiesel production and in the process, displace foreign petroleum with a domestic Advanced Biofuel.
“The U.S. biodiesel industry is poised for a strong 2011, and stands ready to meet the nation’s Advanced Biofuel goals,” concluded Feraci.
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. NBB’s membership is comprised of state, national, and international feedstock and feedstock processor organizations, biodiesel suppliers, fuel marketers and distributors, and technology providers.
BACKGROUND:
Biodiesel Public Policy Benefits: The biodiesel tax incentive has helped achieve the worthwhile policy goal of increasing the production and use of biodiesel in the U.S. In 2004, when the incentive was initially enacted, the U.S. produced 25 million gallons. In 2009, that number rose to 545 million gallons. There are compelling public policy benefits associated with the enhanced production and use of biodiesel in the U.S. Among the most are:
- The Biodiesel Industry is Creating Green Jobs and Making a Positive Contribution to the Economy;
- Biodiesel is Good for the Environment, reducing carbon pollution by up to 85 percent, according to the EPA;
- Biodiesel Reduces our Dependence on Foreign Oil.
The biodiesel tax incentive has helped achieve the desired goal of increasing
the domestic production and use of biodiesel, and in turn has helped the U.S. realize the energy security, economic and environmental benefits associated with displacing petroleum with domestically produced renewable fuels. These benefits, however, will be lost if Congress does not act in a timely manner to address the immediate issue facing the industry and retroactively extend the biodiesel tax incentive. |
