Rep. Earl Pomeroy, D-N.D., has introduced legislation to provide long-term stability to the biodiesel market. Pomeroy's bill, H.R. 4070, will extend the $1 per gallon biodiesel tax credit for five years and update the credit to streamline the processing of it. The biodiesel tax credit is set to expire on Dec. 31, 2009.
"The biodiesel tax incentive is working. Since its enactment in 2004, U.S. biodiesel production has reached commercial scale, and the nation has realized the job creation, environmental and energy security benefits that come with the expanded production and use of biodiesel," stated Manning Feraci, National Biodiesel Board Vice President of Federal Affairs. "These benefits will simply be lost if the credit lapses."
H.R. 4070 is a companion to Senate Bill 1589, the Biodiesel Tax Incentive Reform and Extension of Act, introduced by Senators Maria Cantwell, D-Wash., and Charles Grassley, R-Iowa. Pomeroy believes that by providing a five year extension of the tax credit we will provide the opportunity for this homegrown fuel to grow and expand its foothold in the marketplace. According to Pomeroy that production and consumption of biodiesel will decrease dramatically, or possibly cease altogether, without an extension of this important credit. A multi-year extension will provide the certainty and stability needed to allow producers and investors to make long-term planning decisions about biodiesel production.