Written on: November 18, 2024 by ICM
On Nov. 13, the National Energy & Fuels Institute (NEFI) joined 35 national and State organizations in a letter to Congressional leaders urging action during the lame duck session on expiring renewable and alternative fuel tax incentives. These include the biodiesel and renewable diesel blenders’ tax credit (BTC) and the alternative fuel mixture credit for use of propane as a transportation fuel.
According to NEFI, these incentives are scheduled to be replaced by the Inflation Reduction Act’s Clean Fuel Production Credit (45Z) on Jan. 1, 2025, but the Treasury Department has yet to issue final regulations for this complex new program and is not expected to do so until next year. This delay has resulted in significant market uncertainty, particularly as the heating season approaches.
NEFI’s coalition is requesting a short-term extension of existing credits to provide market stability and breathing room for a broader energy tax debate next year under the new administration and Congress. In a similar letter, Clean Fuels Alliance America, the American Soybean Association and State soybean associations also called on Congress to extend expiring credits and endorsed the NEFI-backed Biodiesel Tax Credit Extension Act (H.R.9060).
The outlook during the lame duck session remains unclear, reports NEFI. Much depends on whether lawmakers decide to wrap up year-end spending and other outstanding items to allow the new Congress to begin with a clean slate in January or if the Republicans prefer a short-term funding bill that pushes major decisions into next year when they will have more leverage to shape policy outcomes.
NEFI is urging allies to send a letter to elected representatives expressing their support of extending the renewable and alternative fuel tax credits.
