Area
United States of America
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/02/2018
Policy Category
Renewable energy
Policy Instrument
Biofuel policy
Description
Passed a retroactive one-year extension of a tax credit granted to biodiesel blenders (which had expired on 31 December 2016), triggering a cash transfer of USD 2.6 million to the U.S. biodiesel supply chain.
Notes
The U.S. Congress passed a one-year extension of the USD 1 per gallon tax credit granted to biodiesel blenders, which had expired on 31 December 2016. The retroactive extension to 2017 will trigger a cash transfer of approximately USD 2.6 million to the US biodiesel supply chain, matching last years biodiesel market of 2.6 million gallons. The U.S. biodiesel industry had sought an extension of the 12-year old subsidy through the current year (2018) and possibly beyond. The industry had also urged lawmakers to convert the blenders credit into a domestic producers credit, in a bid to prevent foreign biodiesel from qualifying for the subsidy (see MPPU June17).
