The National Biodiesel Board (NBB) hosted industry stakeholders for a series of meetings in Washington, D.C. this week with Members of Congress to discuss the status of the biodiesel tax credit and the outlook for tax issues going forward.  The current one dollar per gallon biodiesel blender’s tax credit is scheduled to expire on Dec.  31 and action by Congress to extend any of the expiring tax credits is unlikely to occur before they adjourn for the year.

The biodiesel tax credit has expired numerous times over the past decade and has ultimately been retroactively reinstated by Congress. The prospects for addressing comprehensive tax reform in 2017 have resulted in a reluctance by leadership in the House of Representatives to consider another temporary extension of specific tax credits.

Many farmers and soybean industry leaders joined with other biodiesel stakeholders and NBB members to conduct targeted meetings with key Members of Congress to reiterate the benefits provided by the biodiesel industry, the value of the biodiesel tax credit and to get insight on how it might fit into the comprehensive tax reform process in 2017.  Participants included American Soybean Association (ASA) Director Mike Cunningham (IL), who is also vice chairman of NBB, ASA Washington staff and numerous state soybean representatives.

The feedback received from Members of Congress and their staff, was that while the process could be lengthy, the intent is to move aggressively on tax reform.  There was no consensus or clear indication on how the expiring tax credits will be treated in the initial tax reform proposals.

ASA will continue to advocate to policy makers in support of the biodiesel tax credit and the issue will be a top priority in 2017.