The National Biodiesel Board welcomed a new report titled “The Economic Benefits of the Biodiesel Blender’s Credit.” The report calculates annual economic benefits of $15 billion and environmental benefits of $4.3 billion from U.S. biodiesel production. The report says letting the current tax credit expire at the end of 2022 would harm the U.S. economy and the environment. It shows that the environmental benefits alone from each gallon of biodiesel that replaces petrodiesel exceed two dollars a gallon, or more than double the cost of the credit. Every 100 million gallons supports 3,200 jobs and $780 million in economic opportunity. The new report says eliminating the tax credit would cost up to 3,000 jobs in the biodiesel and renewable diesel industry, as well as another 7-to-9,000 jobs in the supply chain. Biodiesel use as recently as 2019 reduced greenhouse gas emissions by 18 million metric tons. The report says ending the credit would devastate the industry.
NBB Studies Benefits of the Biodiesel Tax Incentive