The biodiesel tax incentive has supported growth of the U.S. market from a few hundred million gallons to more than 2.6 billion gallons annually. There are biodiesel and renewable diesel production plants across the country, and their fuels are used
nationwide in transportation, heating, and other applications. Producers rely on certainty in this policy to finance construction of additional capacity and maintain feedstock supply chains.
Since its initial implementation, Congress has renewed the biodiesel tax incentive every few years to keep it in place continuously. When the tax credit is in place at the start of the calendar year, the industry can grow confidently and sustainably. When the tax credit's status is uncertain, biofuel producers may be forced to sell their product at a loss to maintain market share.
Congress restored the tax credit through 2022 (with retroactive eligibility for 2018 and 2019). NBB will continue to communicate to Congress the effectiveness of the tax incentive and the industry's need for certainty.
As our members communicate with Members of Congress, the media, and the public, NBB works with them to amplify these points:
- With plants and markets across the country, the U.S. biodiesel and renewable diesel industry supports more than 60,000 U.S. jobs, paying $2.54 billion in annual wages. The industry generates more than $17 billion in economic activity each year.
- Fuel blenders can protect consumers from volatile international oil prices by diversifying the fuel supply. Because biodiesel boosts fuel supplies and lowers demand for foreign oil, U.S. consumers saved at least 17 cents on every gallon of diesel
- Biodiesel producers use the broadest mix of raw materials – including recycled cooking oil, animal fats and plant oils – providing value to underutilized resources.