NEW YORK (DTN) -- Congresswoman Diane Black, R-Tenn., last week introduced legislation in the U.S. House of Representatives seeking to extend the biodiesel blenders' tax credit for two years through 2018, an aide to the lawmaker confirmed with Schneider Electric Tuesday morning.
The aide said Black is the sole sponsor of H.R. 5994 at this time, but expects support from fellow lawmakers. The tax credit is set to expire at the end of this year unless Congress acts.
Since 2005, the $1.00-per-gallon biodiesel blenders' tax credit has helped fuel retailers to sell biodiesel at a price that is cost competitive with gasoline and diesel, thereby advancing consumer consumption, said NATSO, a trade group representing travel plazas and truck-stops.
NATSO applauded Black's bill and said "failure to renew the tax credit or converting the tax credit from a blenders' credit to a producers' credit would drive up biodiesel prices to a degree that would diminish consumer interest in the product, ultimately hindering U.S. efforts to advance the utilization of cleaner burning fuels."
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