Since its creation in 2005, the U.S. $1-per-gallon biodiesel tax credit has helped U.S. biofuel producers not only compete with petroleum but reach commercial-scale production – from 100 million gallons to almost 1.8 billion gallons in 2014. The credit has also helped create jobs, strengthen U.S. energy security, reduce harmful and costly emissions, diversify the fuels market and lower costs to the consumer.
But the credit has also expired four times in the past six years, including on Dec. 31, 2014, creating disruptions and uncertainty in the industry.
Now U.S. legislators have voted to retroactively reinstate the credit from January 1, 2015 through December 31, 2016, with President Obama expected to sign it into law by the end of the year.
U.S. biofuel groups are praising the extension for promoting the use and benefits of biofuels throughout North America, and for providing business clarity through 2016.
For Highbury, as we embark on rolling out our enhanced and proprietary technology to commercial scale, the extension signals further welcome government support for the economic and environmental advantages of biofuels, and augurs well for a favourable business and government climate in the years ahead.