The House Ways and Means Committee approved legislation on Thursday that includes a three-year extension of the biodiesel blenders tax credit.
The extension is included in the Taxpayer Certainty and Disaster Tax Relief Act of 2019. An amendment to the act would make the credit retroactive to Dec. 31, 2017, the date it expired and extending the new deadline to Dec. 31, 2020.
In addition, the legislation would extend the second generation biofuels producer tax credit that also expired on Jan. 1, 2018, to Jan. 1, 2021, and the expired alternative fuel vehicle refueling property credit to Dec. 31, 2020.
The package was introduced this week by Rep. Mike Thompson, D-Calif., https://mikethompson.house.gov/…. The bill also includes the extension of a number of natural disaster tax provisions to help with recent natural disasters including floods in Nebraska, Hurricane Florence and California wildfires.
Stephanie Batchelor, acting executive vice president of the Biotechnology Innovation Organization industrial and environmental section, said the lack of the tax credits has slowed development of renewable fuels.
"Allowing these important biofuel tax credits to expire has slowed the growth of an industry that is key to advancing American energy sustainability and improving our environment," Batchelor said in a statement.
"It's time for Congress to extend, and retroactively apply, these tax credits so we can bring certainty to the U.S. businesses working to develop advanced and cellulosic biofuels. These are the 21st-century innovations that will play a significant role in reducing transportation's harmful greenhouse gas emissions while providing new revenue streams for agricultural producers and rural communities across America."
The legislation also drew praise from NATSO, the national association representing truck stops and travel plazas.
"Extending the biodiesel tax credit is critical to ensuring that travel plazas, truck stops and fuel retailers can sell competitively priced biodiesel and encourages the use of renewable natural resources," the group said in a statement.
NATSO said the bill "should be viewed as a helpful step in the right direction toward providing our industry the certainty it needs to continue bringing advanced biofuels to market."
Read the legislation that moved out of committee here: https://waysandmeans.house.gov/…
Todd Neeley can be reached at email@example.com
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