Clean Fuels Alliance America eyes Biodiesel Tax Credit
Clean Fuels Alliance America continues to advocate for an extension of the biodiesel tax incentive.
Kurt Kovarik, vice president of federal affairs, says the Build Back Better bill being considered by Congress includes an extension of the credit.
“Build Back Better includes about a 10-year extension of the biodiesel tax credits,” he says. “The first four years include a straight extension of the $1 per gallon. After that, it converts to a technology neutral credit based on carbon intensity, which we also fare pretty well. So, this would provide us 10 years of certainty in terms of tax policy.”
But, he says there’s still hope if Build Back Better doesn’t get enacted in its current form.
“The positive thing about the biodiesel tax credit is we’ve always had bipartisan support,” he says. “Since its creation in 2005, every extension we’ve gotten has been because of support in the House and Senate with republicans and democrats. So, at the end of the day, I’m confident if the conversation is around climate and rural economic development, we’ll get an extension of the biodiesel tax credit before the end of the year.”
The current biodiesel tax credit expires at the end of 2022.