NACS seeks to advance biofuel tax policies

In Virginia, NACS reported that NACS, NATSO (Representing America’s Travel Centers and Truckstops) and SIGMA sent a letter to the Ways and Means Committee asking it to advance biofuel tax policies that continue to result in lower fuel prices for consumers.

“Fuel retailers blend biofuels into the fuel supply for the same reason consumers purchase biofuels at the pump: it lowers the price of fuel. Today, light-duty drivers pay less money for E15 than they do E10 or straight gasoline, and truck drivers pay less for renewable diesel and biodiesel blends than they pay for straight diesel fuel,” the letter stated. “Biofuels extend fuel supplies and thus help keep transportation costs low. Higher gas prices are generally among the most visible impacts of inflation that consumers experience. When diesel costs go up, it tends to have an infectious inflationary impact on the broader economy because so many goods are moved by truck.”

The letter continued: “Passage of the Inflation Reduction Act (‘IRA’) significantly disrupted the biofuels tax incentive regime: Whereas today there are tax incentives for blenders of renewable advanced biofuels (biodiesel, renewable diesel and sustainable aviation fuel, or ‘SAF’), the IRA stipulates that starting in 2025 there will be a new producer incentive for all biofuels.”

In the letter, NACS, NATSO and SIGMA recommend a number of actions to the committee, including the extension of the the biodiesel blenders tax credit to prevent production plants from shutting down and higher diesel prices and emissions throughout the country.

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