Help Save the Biodiesel Tax Incentive

The Biodiesel tax incentive will expire on December 31, 2009 unless Congress acts affirmatively to extend the tax credit.

The biodiesel tax incentive was enacted in 2004 allowing the nation to reap the economic energy, security and environmental benefits associated with commerical scal production and use of biodiesel. This incentive is designed in such a way that makes biodiesel competitively priced with petroleum diesel in the marketplace.

If the credit is allowed to lapse, it will intensify the astounding challenges that face the industry already and will cost the U.S. an additional 23,000 jobs to the 29,000 that have already been lost in 2009.

According to a study released by renowned economic analyst, John M. Urbanchuck, there will be a major loss of jobs and income, increased demand for petroleum diesel, a degradation of energy security, decreased demand for soybean oil and lower soybean prices leading to a negative impact on farm income, stranded investment as biodiesel capacity is idled, and lost tax revenue for States and local Governments.

The U.S. House of representatives is tentatively scheduled to consider legislation that would extend a host of expiring tax provisions, including the biosiesel tax incentive for one year. With health care dominating the Senates focus, it's unclear when, or, if the U.S. Senate will address this issue before the end of the year. Both chambers must reach an agreement of the final makeup of a larger tax bill carrying an extension of the biodiesel tax incentive.

The National Biodiesel Board, (NBB) has provided a Tax Credit Action Center with a sample letter, talking points, and contact information for your elected officials. Those who wish to participate in saving the Biodiesel Tax Incentive can visit the site provided by the NBB by Clicking Here.