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Tax Incentive Action Page


Fueling Action Center ::

Congress has used tax incentives to stimulate domestic energy production for more than 100 years. Since being implemented in 2005, the biodiesel tax incentive has played a key role in stimulating growth in the U.S. biodiesel industry, helping it become the first EPA-designated Advanced Biofuel to reach commercial-scale production nationwide. By helping biodiesel compete on a more level playing field with petroleum, the $1-per-gallon tax credit creates jobs, strengthens U.S. energy security, reduces harmful and costly emissions, diversifies the fuels market, and ultimately lowers costs to the consumer. There is a clear correlation between the tax incentive and increased biodiesel production, which has grown from about 100 million gallons in 2005, when the tax incentive was first implemented, to almost 1.8 billion gallons in 2014.

However, unlike billions of dollars in petroleum tax incentives written permanently into the tax code, the biodiesel tax incentive faces tremendous uncertainty as Congress has passed short-term extensions and allowed it to temporarily expire repeatedly in recent years, including for most of 2015. This has created significant disruptions in the industry. The annual threat of losing the tax incentive has stunted growth, limiting biodiesel producers’ access to capital and investment while restricting their ability to expand and hire new employees. With less than a decade of commercial-scale production, biodiesel remains a young and maturing industry that needs stable, long-term tax policy to continue meaningful growth.

In late 2015, Congress reinstated the biodiesel incentive through 2016. The biodiesel industry is now calling on Congress to pass a multi-year extension to prevent additional disruptions moving forward. Additionally, we are urging Congress to reform the tax incentive as a producer's credit aimed at domestic production. We encourage  all biodiesel stakeholders to contact their elected officials in Congress to advocate on the industry's behalf.

To reach your senators' offices, call the Senate switchboard at 202- 224-3121 or visit the Senate website here. Unless you already have a contact at the office, ask to speak to the staffer who handles energy or tax issues.

To contact your U.S. Representative call the House switchboard at 202-225-3121 or visit the House website here.

Additionally, our Washington office is happy to send you a list of key legislative assistants for your lawmakers, along with their direct emails and phone numbers, to make sure you can get through. Feel free to call our Washington office at 202-737-8801 or email Kirsten Skala at kskala@biodiesel.org.