National Biodiesel Board and the Producer’s Credit
June 21, 2018 – The National Biodiesel Board – the biggest U.S. biodiesel lobbying group – has decided to no longer push to convert a $1 per gallon tax credit available to biofuel blenders into one for producers. The National Biodiesel Board had previously made efforts to change the credit to benefit the biodiesel producers it represents, their reasoning that the credit was originally intended to support the domestic industry, and some blenders benefitting from the credit were importing millions of dollars of foreign biodiesel.
A recent successful trade case versus Indonesia and Argentina has helped to stop biodiesel imports being sold below fair market value and the change recognizes the success of that case.
The tax credit benefits companies that blend biodiesel into gasoline and first went into effect in 2005. The credit has often been renewed retroactively and has not been renewed for 2018. The National Biodiesel Board pushed this year for the credit to be renewed retroactively to 2017 and extended through 2018 but the credit was only renewed for 2017. The board hopes that focusing efforts on extending the credit rather than also converting it will lead to success for an extension over a longer period.
If you have questions as it relates to this, please don’t hesitate to reach out to one of our experts.