As an extension of the biodiesel blenders credit is being considered by Congress as part of the Build Back Better Act, a new report from the National Biodiesel Board shows the economic value of the incentive. NBB’s Vice President, Federal Affairs Kurt Kovarik says it calculates annual economic and environmental benefits of $19.3 billion from U.S. biodiesel production.
He says the report indicates that allowing the current tax credit to expire at the end of 2022 would harm the U.S. economy and the environment. It shows that the environmental benefits alone from each gallon of biodiesel that replaces petrodiesel exceed two dollars a gallon, or more than double the cost of the credit.
Kovarik says they’re hopeful the longer-term extension contained in Build Back Better will be passed to provide certainty for the industry.
He says if the tax extension doesn’t come on Build Back Better it will be included in the tax extenders package.
Every 100 million gallons of biodiesel supports 3,200 jobs and $780 million in economic opportunity. The new report says eliminating the tax credit would cost up to 3,000 jobs in the biodiesel and renewable diesel industry, as well as another 7-to-9,000 jobs in the supply chain. Biodiesel use as recently as 2019 reduced greenhouse gas emissions by 18 million metric tons. The report says ending the credit would devastate the industry.
