NATSO, SIGMA Statement on Reports that IRS, Treasury Department Are Not Expected to Issue Guidance on Implementation of the Clean Fuel Production Tax Credit in 2024
ALEXANDRIA, VA. 鈥� NATSO, representing truck stops and travel plazas, and SIGMA: America鈥檚 Leading Fuel Marketers, issued the following statement in response to published reports that the Department of Treasury and the Internal Revenue Service are unlikely to issue guidance governing implementation of the Clean Fuel Production tax credit, also known as 45Z, by year end. The following statement can be attributed to 黑料社区and SIGMA.
鈥淭hese reports make clear that Congress must extend the longstanding biodiesel blenders鈥� tax credit to serve as a bridge until a new Administration and the 119th Congress can address longer-term tax policy in 2025. Without guidance, fuel producers will not be able to utilize the 45Z credit in the coming year. This will result in higher fuel prices and emissions as the biodiesel industry effectively shuts down.
鈥淓xtending the $1.00 per gallon biodiesel blenders鈥� tax credit will allow fuel retailers to continue to cut carbon emissions while also keeping fuel prices down. The biodiesel blenders鈥� tax credit has been instrumental in developing a strong biodiesel and renewable diesel industry in the United States, driving significant growth in production. The U.S. biodiesel and renewable diesel market has expanded from approximately 100 million gallons in 2005 to around 4 billion gallons in 2023, all while lowering transportation-related carbon emissions.
鈥淔or more than two decades, the biodiesel blenders鈥� tax credit has incentivized fuel retailers to invest in biodiesel and renewable diesel. These fuels represent the most viable near-term option for reducing carbon emissions from the nation鈥檚 trucking, home heating oil, and rail industries. The biodiesel tax credit directly lowers the cost of diesel fuel for truck drivers, which in turn reduces shipping costs and helps lower the prices consumers pay for goods transported by truck.
鈥淭he best way to reduce carbon emissions from transportation and lower fuel prices at the pump is to ensure that all biofuels have equal tax treatments and that fuels such as biodiesel and renewable diesel are less expensive than petroleum-based fuels. Without the necessary guidance, the market will not invest in these fuels, and the 45Z tax credit will fail to function as Congress intended.
鈥淲e urge Congress to quickly pass this critical tax extension, and we look forward to working with policymakers in the coming year to find the best path forward so that future incentives in the renewable fuel industry protect consumers from rising trucking and fuel costs.鈥�
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