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.
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