Biodiesel trade association supports proposed extension of tax incentive

From press release

WASHINGTON, D.C.—The National Biodiesel Board (NBB) applauded U.S. Rep. Earl Pomeroy (D-N.D.) and U.S. Rep. John Shimkus (R-Ill.) for introducing H.R. 4070, legislation to reform and extend the biodiesel tax incentive. The biodiesel tax incentive is set to expire Dec. 31, 2009.

“The NBB commends representatives Pomeroy and Shimkus for their steadfast commitment to the domestic production and use of biodiesel,” said Manning Feraci, NBB’s vice president of Federal Affairs. “This critical legislation will provide the federal policy framework and certainty entrepreneurs need to create jobs and displace petroleum with low-carbon diesel replacement fuel.”

H.R. 4070 is aimed at providing stability and reliability in the marketplace by extending the biodiesel tax incentive for five years. In addition, the legislation would change the biodiesel tax incentive from a blenders excise tax credit to a production excise tax credit. This common sense change will focus the incentive on the domestic biodiesel industry, improve administration of the nation’s tax laws, and protect the integrity of the credit.

Feraci added: “Expiration of the biodiesel tax incentive at the end of the year would cause domestic biodiesel production to cease. The U.S. biodiesel industry appreciates the proactive steps representatives Pomeroy and Shimkus have taken to save jobs and preserve the commercial scale production and use of biodiesel in the U.S.”

NBB is the national trade association of the biodiesel industry and is the coordinating body for biodiesel research and development in the U.S. NBB’s membership is composed of biodiesel producers and marketers, state, national and international feedstock and feedstock processor organizations, and technology providers.