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Omnibus spending bill does not include Biodiesel Tax Credit extension

An extension of the Biodiesel Tax Credit was not included in the omnibus spending bill signed today by President Trump.

National Biodiesel Board VP of federal affairs Kurt Kovarik says this is the latest setback for an industry looking for certainty.

“It’s uncertainty from the grower to the biodiesel producer to the petroleum marketing who wants to sell the product, nobody knows what the rules of the game are right now.  Because they’re operating in an environment where there’s just uncertainty as to whether the Tax Credit could possibly come back and be retroactive.  So they’re all assuming risk.”

Congress passed a retroactive extension in February, but biodiesel producers continue to operate without the $1 Dollar-per gallon tax credit in 2018.

Kovarik tells Brownfield NBB is moving forward.

“It’s hard to say if there will be anymore either revenue measures that go through Congress, or must-pass pieces of legislation that go through Congress.  We’re going to get our advocates up on the Hill talking with our champions to find out when might be the next opportunity.”

Since the Biodiesel Tax Credit was passed into law more than 10 years ago, Kovarik says he believes it has been off more than on.

He says the industry is struggling to grow amidst the continued uncertainty.