NATSO, the national association representing travel plazas and truckstops, applauded Rep. Diane Black (R-Tenn.) for introducing the “Biodiesel and Renewable Diesel Incentive Extension Act of 2016,” (H.R. 5994) that would extend the biodiesel blenders’ tax credit for two years through 2018.
“We commend Rep. Black for introducing legislation that will renew this critical tax credit,” NATSO Vice President of Government Affairs David Fialkov said in a statement. “Renewing the biodiesel blenders’ tax credit is the right decision for both fuel retailers and the American people. Without a blenders’ credit, fuel prices across the country will inevitably increase, which in turn would increase the costs of shipping while driving customers away from cleaner burning fuels. By extending the biodiesel tax credit, fuel marketers will be able to increase the volume of cleaner-burning fuels in the United States while simultaneously offering customers a lower price. It’s a win-win for everybody.”
The tax credit is set to expire at the end of 2016 unless Congress acts to extend it.
Since 2005, the $1 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, the association said in its statement, issued Sept. 19. Failure by Congress 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, according to the association. NATSO is headquartered in Alexandria, Va.