Congress must extend the long-term biodiesel blenders tax credit (BTC) in response to published reports that the U.S. Treasury and IRS are unlikely to issue guidance governing the implementation of the Clean Fuels Production Tax Credit, also known as 45Z, before the end of the year, fuel retailers associations NATSO and SIGMA said.
The organisation said the extension of the biodiesel tax credit will act as a bridge until the new Trump administration and the 119th Congress are able to address long-term tax policy in 2025.
Without guidance, fuel producers will not be able to take advantage of the 45Z credit in the coming year.
NATSO and SIGMA said, ‘The biodiesel industry will effectively shut down, which will lead to higher fuel prices and increased emissions.’
The association said, ‘Extending the $1 per gallon biodiesel blender tax credit will allow fuel retailers to continue to reduce carbon emissions while lowering fuel prices.’