Detail

United States of America

Biofuels

Biodiesel

01/12/2019

Renewable energy

Biofuel policy

Approved a five-year extension of the USD 1 per gallon tax credit for biodiesel blenders. The tax incentive would be reinstated retroactively – from its expiry on 1 January 2018 through 31 December 2022.

UNITED STATES – biofuel policy (blenders tax credit): In December, the Government signed into law a new budget deal including a historic five-year extension of the USD 1 per gallon tax credit for biodiesel blenders. The tax incentive’s retroactive reinstatement – from its expiry on 1 January 2018 through 31 December 2022 – is expected to provide a stable framework for the sector’s further growth. For the last six years, the tax credit was allowed to expire, with retroactive extensions granted for one year at a time. Reportedly, at an annual cost of almost USD 2 billion, the 15 year-old programme is among the country’s most expensive energy subsidy policies.