Biodiesel producer to testify at tax extenders hearing March 14

By Ron Kotrba | March 13, 2018

A ways and means tax policy subcommittee of the U.S. House of Representatives will hold a hearing March 14 to assess and discuss the importance of various tax extenders such as the biodiesel tax credit that were not addressed in the tax reform package signed into law late last year. The hearing will include four panels and is expected to begin at 10:00 a.m. Eastern Time.

Cal Meyer, chief operating officer at Ag Processing Inc. (AGP), is scheduled to testify on behalf of the National Biodiesel Board during the fourth panel. Meyer will make the case of the importance of the biodiesel tax credit to accelerating growth in the industry and providing economic and environmental benefits to the taxpayer. AGP owns 10 soybean processing facilities across the Midwest and three biodiesel facilities with installed capacity totaling 150 MMgy. Last summer, the company completed an expansion from 30 to 60 MMgy at the nation’s first commercial-scale biodiesel plant in Sergeant Bluff, Iowa, which was built in 1996.

For more information, or to watch the hearing live, click here.

In advance of the hearing, the NBB and more than 50 of its member organizations sent a letter to leaders of Congress calling for reinstatement of the biodiesel tax credit.

“Extending the biodiesel tax incentive is consistent with sound energy and economic policy,” the letter states. “The uncertainty created by the lapse of the tax credit is curtailing investments in new plants and capital projects to maintain, improve and expand existing plants. We believe that if the tax credit is extended through at least 2018, the biodiesel industry would experience substantial growth in the near term, which would create significant new employment opportunities. Biodiesel is an American success story.” Click here to read the full letter and view the signatories.

“The noise of uncertainty is detrimental to the future of the industry,” said Kurt Kovarik, vice president of federal affairs at NBB. “We’ve seen biodiesel and renewable diesel production grow from 25 million gallons before the tax credit to nearly 3 billion gallons. Imagine how much farther we could be as an industry if this federal policy mechanism hadn’t lapsed so many times.” 

 

 
 
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