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Tax Act Reinstated for Biodiesel Credit
President Obama signed the Tax Increase Prevention Act of 2014 into law Dec. 19, which reinstates the $1 per gallon biodiesel and renewable diesel tax credits from Jan. 1, 2014, through the end of the year.
"The biomass-based diesel industry has proven that it provides substantial benefits for energy security, food security, job creation and our environment," said Daniel J. Oh, president and CEO of Renewable Energy Group Inc., the largest U.S. biodiesel producer. "We are appreciative to see the reinstatement of the biodiesel tax credit for 2014 and grateful to all the lawmakers who worked to get it done because they understand how those benefits far outweigh any cost of the tax credit.REG will strive to continue being a good steward of the monies we receive from this worthwhile incentive."
Nicholas Ng, president of Methes Energies International Ltd., said, "We are pleased with the reinstatement of the blenders tax credit. This will result in us getting back approximately $1 million for biodiesel sold in 2014. This will also strengthen our cash position. We and the rest of the biodiesel industry still await congressional action on biodiesel incentives for 2015."
"Bio" Joe Renwick, co-owner and process engineer at Midlands Biofuels, a small-scale biodiesel plant in Winnsboro, S.C., toldBiodiesel Magazine that reinstatement of the tax credit for 2014 "will make whole those companies that banked on the credit coming back and allow them to continue operations. To companies like MidlandsBiofuels and many others that produced onlyenough fuel to keep the doors open without going broke,it will help, but it won't have a huge impact. But it'll be helpful nonetheless. We have never depended on the credit to keep us going."
Renwick said Midlands Biofuels will use the money it receives from reinstatement of the biodiesel tax credit to buy a fuel delivery truck to help his business be even more independent in the years to come, and to pay down some debt.