Biodiesel Tax Incentive Lapses, Industry Remains Hopeful

From The Biodiesel Bulletin, January 2012:

The National Biodiesel Board expressed disappointment with Congress’ failure to extend the $1-per-gallon biodiesel tax incentive before it expired on Dec. 31 but saw some reason for hope that lawmakers could act early this year.

Leaders in both parties have said they want to take up a package of tax extensions early in 2012, and many have said the biodiesel incentive should be part of such a package. NBB is urging everyone involved in the biodiesel industry to continue calling on their elected officials to support an extension.

"We're disappointed," said Anne Steckel, NBB’s vice president of federal affairs. "Jobs and the economy are supposed to be the top priority in Washington, yet Congress has left thousands of workers in limbo by failing to extend this tax incentive. It's a missed opportunity, and we are urging Congress to pass an extension immediately to limit the economic damage."

The biodiesel industry saw a remarkable turnaround in 2011 after Congress reinstated its $1-per-gallon tax incentive following a one-year lapse in 2010. The increased production in 2011 supports some 39,000 jobs - up from fewer than 13,000 in 2010 - while generating at least $3 billion in GDP and $628 million in federal, state and local tax revenues, according to a recent economic study. In addition to creating jobs and economic activity, biodiesel is reducing U.S. reliance on foreign oil, bolstering economic and national security by diversifying our fuel supply, and reducing tailpipe pollution and greenhouse gas emissions.