Tax Incentive Action Page

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Biodiesel Tax Incentive
The biodiesel tax incentive plays a key role in supporting growth of the U.S. biodiesel industry, helping biodiesel and renewable diesel producers create jobs, diversify the fuels market and strengthen U.S. energy security.

The incentive expired at the end of 2017. Join NBB in urging Congress to quickly renew the biodiesel and renewable diesel incentive to help the industry meet growing demand for advanced biofuels.

On June 20, the House Ways & Means Committee passed legislation that would extend many expired and expiring tax credits, including the biodiesel tax incentive. The Biodiesel Tax Credit Extension Act of 2019 (HR 2089) sends a strong signal to House leaders that extension of the biodiesel tax incentive is an urgent priority. Please thank your Representative if he or she is among the 54 co-sponsors of the bill. Encouraging additional co-sponsors will continue to send a strong signal to Congress.

Use this form to write your Representative and urge Congress to quickly renew the biodiesel tax incentive.TAKE 30
NBB’s Washington office is always available to help, so please don't hesitate to call us at 202-737-8801.

Biodiesel Tax Incentive Background

The tax incentive works. The U.S. biodiesel market grew from about 100 million gallons in 2005, when the tax incentive was first implemented, to more than 2.6 billion gallons annually. Biodiesel producers across the country continue to build capacity for growth.

America’s economy grow and adds jobs. Every 100 million gallons of biodiesel production supports 3,200 jobs. With plants in every state, the U.S. biodiesel and renewable diesel industry supports more than 60,000 jobs across the United States that earn $2.54 billion in annual wages. The industry generates more than $11.42 billion in economic activity each year.

Energy security is enhanced. Biodiesel diversifies our fuel supplies so that we are less dependent on global oil markets. Despite increased domestic oil production, consumers will remain vulnerable to volatile international oil prices without competition in the fuels market. Because biodiesel boosts fuel supplies and lowers demand for oil imports, U.S. consumers saved at least 17 cents on every gallon of diesel in 2017.

Biodiesel improves environmental quality. Biodiesel producers use a broad mix of resources, such as recycled cooking oil, animal fats and plant oils. EPA classifies biodiesel as an advanced biofuel because it reduces greenhouse gas emissions compared to petroleum diesel – by 57 to 86 percent, according to Argonne National Labs.