Representatives Mike Carey
(R-OH), Claudia Tenney (R-NY), Annie Kuster
(D-NH) and Mariannette Miller-Meeks (R-IA)
introduced the “Biodiesel Tax Credit Extension
Act of 2024,” (H.R. 9060), which aims to extend
the $1 per gallon biodiesel blender’s tax credit
through 2025. Extending the biodiesel blender’s
tax credit is important to energy marketers in
order to sell a growing portfolio of affordable,
efficient, and environmentally friendly liquid
fuels that are helping to reduce emissions while
propelling Americans forward and lowering
heating fuel costs.
“The Energy
Marketers of America would like to thank
Representatives Mike Carey, Claudia Tenney,
Annie Kuster and Mariannette Miller-Meeks for
introducing this important legislation to help
small business energy marketers across the
country. It’s a win-win for the environment and
consumers’ pocketbook,” said EMA President Rob
Underwood.
Since 2004, the $1 per gallon
biodiesel blender's credit has worked
successfully to build a strong incentive for
downstream energy marketers to blend renewable
fuel into the fuel supply which has lowered
prices for motorists and heating fuels for
consumers. As a result, the U.S. biodiesel and
renewable diesel market has grown from roughly
100 million gallons in 2005 to 4 billion gallons
today.
Unfortunately, the Inflation
Reduction Act (IRA), which was signed into law
in 2022, replaced the biodiesel blender’s tax
credit with a new 45Z Clean Fuel Production
Credit (CFPC) based on carbon intensity scores.
Ethanol, biodiesel, renewable diesel and
sustainable aviation fuel (SAF) will all be
eligible for the new production tax credit,
however, the Department of the Treasury has yet
to publish CFPC guidance. Therefore, it is
important that Congress acts soon to extend the
biodiesel blender’s tax credit to give impacted
industries market certainty for at least another
year. Depending on the outcome of the November
elections, a GOP controlled Congress could
reelevate much of the IRA’s tax credits so stay
tuned. |
