NBB and ABFA urge Senate to extend biofuels tax incentives.
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Press Release Summary:
NBB and Advanced Biofuels Association, in joint letter to U.S. Senate Democratic and Republican Leadership, today urged chamber to retroactively extend biodiesel, renewable diesel, and alternative fuels tax credits through 2011 before adjourning for upcoming midterm elections. Lapse of tax incentives on December 31, 2009 and Congress' inability to enact legislation extending these incentives has significantly harmed biofuels producers and has caused instability in the marketplace.
Original Press Release:
NBB, ABFA Call on Senate to Extend Biofuels Tax Incentives Prior to Midterm Elections
WASHINGTON, DC - The National Biodiesel Board (NBB) and the Advanced Biofuels Association (ABFA), in a joint letter to the U.S. Senate Democratic and Republican Leadership, today urged the chamber to retroactively extend the biodiesel, renewable diesel, and alternative fuels tax credits through 2011 before adjourning for the upcoming midterm elections.
"The lapse of the biodiesel tax incentive and the Senate's subsequent inability to address this issue has killed thousands of jobs and has made America more dependent on foreign oil," said Manning Feraci, NBB's Vice President of Federal Affairs. "Before the Senate goes home to campaign, it should do the right thing and seamlessly reinstate the biodiesel tax incentive."
ABFA President Michael McAdams noted, "If Washington doesn't step in before lawmakers leave for the campaign trail, then they are essentially putting a virtual hold on our nation's energy and economic security. It is critical that policies already put in place will continue to incentivize and reward continued innovation in superior performance technologies and products so that we can reach renewable fuel goals much higher than current standards. Industry cannot be expected to continue to build and develop fuels of the future if the government does not hold up its end of the bargain. "
The Internal Revenue Code (the Code) provides a one dollar per gallon tax incentive for biodiesel and renewable diesel. Both biodiesel and renewable diesel are required by statute to meet specific fuel quality standards to qualify for their respective tax incentives. In addition, the Code provides a fifty cents per gallon tax credit for alternative fuels that displace petroleum in various applications but do not meet the quality specifications required by statute to claim either the biodiesel or renewable diesel tax incentive.
The biodiesel, renewable diesel, and alternative fuels tax credits help achieve the public policy objective of displacing petroleum by making these renewable fuels price competitive with conventional petroleum fuels in the marketplace. The lapse of these tax incentives on December 31, 2009 and Congress' inability to enact legislation extending these incentives has significantly harmed biofuels producers and has caused instability in the marketplace. The joint request from NBB and ABFA to retroactively extend these tax incentives through 2011 would allow entrepreneurs to access the capital necessary to produce renewable fuel and create good paying jobs.
About NBB
The NBB is the national trade association of the biodiesel industry and is the coordinating body for biodiesel research and development in the U.S. NBB's membership is comprised of biodiesel producers; state, national, and international feedstock and feedstock processor organizations; biodiesel suppliers; fuel marketers and distributors; and technology providers. Biodiesel is a diesel replacement fuel that meets the ASTM D6751 commercial fuel specification and is an Advanced Biofuel under the Renewable Fuels Standard (RFS2).
About ABFA
The member companies of The Advanced Biofuels Association (ABFA) represent the new generation of advanced and renewable technologies that will help drive America's new economy and fuel a sustainable future for the world. The ABFA represents companies who can make advanced biodiesel, renewable diesel and alternative renewable molecules which are directly affected by the expired tax provisions. For more information click on www.advancedbiofuelsassociation.com.
