The National Biodiesel Board's Vice President of Federal Affairs, Manning Feraci, spoke about the importance of extending the biodiesel tax incentive Thursday before a meeting of the U.S. House Committee on Small Business. Currently the tax incentive is scheduled to expire on Dec. 31, 2008.
"We have clearly seen a positive impact since the biodiesel tax incentive was enacted as part of the American Jobs Creation Act of 2004," Feraci said. "Not only has there been an increase in jobs, biodiesel has proven to be a viable energy alternative which is environmentally friendly. Continuing this incentive will take the nation one large step closer to energy independence."
The U.S. biodiesel industry provide more than 21,000 jobs in 2007 and contributed more than $4.1 billion to the United States' Gross Domestic Product. One Merrill Lynch commodity strategist noted that if biofuel producers do not continue to increase production, oil and gasoline prices would be roughly 15% higher, thus resulting in additional price increases for energy.
"Allowing the biodiesel tax incentive to expire would have a devastating impact on the biodiesel industry," Feraci said. "From an energy security, job creation and environmental perspective, there is a compelling public policy rationale for continuing the biodiesel tax incentive, and NBB urges Congress to extend this important incentive before it adjourns for the year."
To read Feraci's testimony, click HERE.