Biodiesel tax incentive struggles for Congress’ attention
A bill to reform and extend the biodiesel tax incentive has been introduced in the U.S. House. National Biodiesel Board spokesman Michael Frohlich says the bill is essential for biodiesel’s future, but he fears that lawmakers have too much on their plate.
“With health care kind of taking all the air out of the room, there’s a terrible amount uncertainty and the very real possibility that it might not be extended,” said Frohlich, from his office in Washington, D.C., during an interview with Brownfield.
AUDIO: Michael Frohlich (8 min. MP3)
The bill, introduced by House members Earl Pomeroy of North Dakota and John Shimkus of Illinois, shifts the incentive’s focus to the domestic biodiesel industry, which, says Frohlich, protects the integrity of the credit.
“It makes the current tax credit more stable by changing it into a production credit and makes sure that the tax credit is given to those who produce the fuel inside the United States and there aren’t any problems with transshipment or blending problems,” said Frohlich.
The National Biodiesel Board calls the bill ‘critical legislation’. Frohlich says failure to extend the incentive will devastate the industry.
Brownfield reporter Dave Russell contributed to this article.
[…] December looks to be a big month for biofuels: With a major ethanol producer announcing that their production costs have been cut in half over the past two years, the EPA will make a ruling on whether or not to raise the limit on ethanol blends from 10 to 15%. As Congress looks at health care, the financial sector and climate change, many worry that a biodiesel tax incentive won’t be renewed. […]
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