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In March, Group Vice President and Chief Operating Officer Cal Meyer testified before a tax-writing committee in the U.S. House of Representatives in support of the biodiesel tax incentive. The $1.00/gallon biodiesel blender’s credit has been expired since December 31, 2017.
“We urge Congress to renew the biodiesel blender’s tax incentive through 2018 at a minimum, while considering a multi-year approach. Doing so would drive new investment and establish market certainty for U.S. farmers, ranchers, petroleum marketers, blenders, and fuel retailers,” said Meyer.
Meyer pointed out that the biodiesel blender’s tax credit helped achieve the desired goals of expanding domestic production of American energy resources and the creation of new, good paying jobs. The biodiesel industry currently supports roughly 64,000 jobs, $11.42 billion in economic impact, and $2.54 billion in wages paid.
Biodiesel also adds value to the agricultural sector. Biodiesel allows farmers to be more competitive in the global protein market, as demand for biodiesel supports U.S. soybean processing and export opportunities. In addition, America benefits from fewer toxic pollutants and improved air quality due to increased use of biodiesel, which reduces hydrocarbon emissions by 67 percent and life cycle greenhouse gases by 86 percent.
“The public policy benefits of the tax incentive are clear,” Meyer said. “These benefits, however, will be jeopardized without reinstatement of the biodiesel tax incentive.”
Left to right: Cal Meyer, AGP Group Vice President and Chief Operating Officer, Donnell Rehagen, CEO National Biodiesel Board, and Robert Johnston, President, Nebraska Soybean Association in the Hearing Room of the U.S. House Ways and Means Committee.