The Senate Finance Committee passed a markup package by a 19-5 vote that would re-instate tax credits for biodiesel, compressed and liquefied natural gas that expired late last year.
“The biodiesel tax incentive is a proven job creator. Growth in our industry has been stagnant since the incentive expired on Dec. 31. Reinstating it will get biodiesel producers across the country back to expanding their businesses and hiring new employees, as they were doing last year with the tax incentive in place,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board.
The biodiesel tax incentive was implemented in 2005 and expired five years later. It was reinstated last year, and NBB said as a result biodiesel production grew by a record 1.1 billion gallons and supported 39,000 jobs nationwide. If passed into law, the biodiesel tax credit, which includes “renewable diesel,” would be available through the end of 2013.
Steckel added that NBB is calling on the full Senate to “quickly pass this package, and for the House to follow suit.”
The biodiesel tax break is part of an overall alternative fuels tax credit that would also reinstate a rebate for compressed or liquefied natural gas that also expired at the end of 2011. Additionally, a provision would extend the 30 percent tax credit up to $30,000 for business property and up to $1,000 for in-home use for refueling orrecharging property for clean burning fuels. These include natural gas, propane, B20 or higher biodiesel blends and hydrogen, and electricity.
Gabe Rozsa, director of the D.C.-based lobbying firm Prime Policy Group that works with NSTA, told School Transportation News that it was unclear when the alt-fuel provisions might go to the Senate floor because all revenue measures must originate in the House.
“Overall, the markup was pretty collegial leaving some hope they can work out some of the much larger tax issues facing Congress,” he added.
