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Kovarik: It’s time for a long-term extension of the biodiesel tax credit

The biodiesel industry has faced uncertainty for more than a decade because of the on- and off- again nature of the biodiesel tax credit.

Kurt Kovarik, vice president of federal affairs for the National Biodiesel Board, says the biodiesel industry has never seen the full benefits of the tax incentive, which is why leaders are asking Congress to pass a multi-year extension.

“We’ve been in a position where this tax credit has been on-again and off-again since 2005,” he says. “It’s almost been passed retroactively as much as it’s been forward looking, so it’s never really provided the forward-looking incentive driver that was intended”

He tells Brownfield the $1 dollar per-gallon tax credit has helped increase biodiesel production from 100 million gallons in 2005 to nearly 3 billion today.

“The tax credit provides them with a financial incentive to take the risk to put in the investment to put in the infrastructure to get that fuel to market,” he says.

Kovarik says he hopes action is taken on the tax credit soon after the partial government shutdown ends.  

Audio: Kurt Kovarik, National Biodiesel Board