The BNB publishes a study on the advantages of the biodiesel tax incentive

0

Today, the National Biodiesel Board welcomed the release of a new report, “The Economic Benefits of Biodiesel Blender CreditFrom Capital Policy Analytics. The report calculates the annual economic benefits of $ 15 billion and the environmental benefits of $ 4.3 billion from biodiesel production in the United States. By 2020, the US biodiesel and diesel market renewable reached 3 billion gallons with the backing of the $ 1 per gallon tax incentive.

“The current tax credit expires at the end of 2022. Letting it expire would hurt the US economy and the environment, the data shows,” the report said.

“There is also a significant body of research showing that the biodiesel tax credit easily passes a cost-benefit analysis and that the environmental benefits alone from each gallon of biodiesel that replaces petrodiesel exceed $ 2 per gallon, or more than $ 1 per gallon. double the cost of credit. , continues the report.

The US biodiesel and renewable diesel industry supports 65,000 US jobs and more than $ 17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $ 780 million in economic opportunity. The new report estimates that the expiry of the tax incentive would eliminate up to 3,000 jobs in the biodiesel and renewable diesel industry. The total loss of jobs along the supply chain associated with production would be between 7,500 and 9,000 jobs.

Additionally, the report finds that in 2019, the use of biodiesel reduced U.S. greenhouse gas emissions by nearly 18 million metric tonnes. The cumulative reduction in greenhouse gas emissions since the inception of the biodiesel tax incentive is over 100 million metric tonnes.

The authors of the report write: “We believe that ending credit in 2022, when current legislation providing for it expires, would be discouraged and would likely devastate the market, leading to the destruction of thousands of jobs, increased greenhouse gas emissions. greenhouse gases and other local air pollutants, and undoing much of what the previous 17 years have accomplished – establishing a robust market for an important fuel and an essential tool to reverse the climate change. “

A a copy of the report is available for download.

Kurt Kovarik, BNB Vice President of Federal Affairs, said: “This report demonstrates how remarkably effective the tax incentive has been in supporting the emergence of biodiesel and renewable diesel. As more and more American consumers demand better, cleaner fuels, forward looking tax incentives can help the industry grow and diversify in a sustainable manner. We appreciate the bipartisan support of Congress for the continuation of this policy. “

Biodiesel production supports about 13 percent of the value of every bushel of U.S. soybeans

Share.

Comments are closed.