Multiple trade organizations applauded US Representatives Diane Black (R-TN) and Ron Kind (D-WI) Wednesday, for introducing bipartisan legislation that would extend the biodiesel blenders tax credit an additional five years.
The National Association of Convenience Stores (NACS), along with the National Association of Truck Stop Operators (NATSO), the Society of Independent Gasoline Marketers of America (SIGMA), Petroleum Marketers Association of America (PMAA) and the American Trucking Associations (ATA), each offered their support for H.R. 3264, which would provide a blenders tax credit of $1/gal in 2017 and 2018, $0.75/gal in 2019, $0.50/gal in 2020 and 2021, before an eventual phase-out in 2022 and beyond.
“NACS supports H.R. 3264 and appreciates the leadership of Reps. Black and Kind in introducing this legislation,” said NACS director of government relations Paige Anderson.
Under the past model, the federal biodiesel tax credit has been allowed to expire annually, forcing market participants to wait for a retroactive renewal at the end of each year. Under the proposed legislation, however, a more clearly defined off-ramp for the incentive will be provided, which the trade organizations believe will lead to greater clarity and less market anxiety.
“The biodiesel blenders’ tax credit has played an important role in bringing more biodiesel into the marketplace. However, the year-to-year extension process has led to increased uncertainty. This bill eliminates the uncertainty, keeps the tax credit with the blender, and provides a smooth transition in phasing out the tax credit,” Anderson added.