Experts across the biodiesel industry will likely agree that gaining popular support can be difficult. That is what made the recent three-year extension on the biodiesel tax incentive so important for the industry as a whole. To understand how this can benefit biodiesel companies, it is important to know what background of the tax incentive is.
Back in 2005, the concept and execution of biodiesel fuel were still considered very new to the clean energy industry. To support and protect the biodiesel industry while it was in its beginning stages, the biodiesel tax incentive was created. As part of the incentive, biodiesel producers would be able to continue working without the risk of being shut down throughout, to build out the biodiesel industry.
When the tax incentive was first passed in 2005, the biodiesel industry was creating an average of 100 million gallons per year. Since then, the industry has seen a dramatic increase in demand, with the average gallons produced jumping to 2.6 billion per year in the last couple of years. The success and growth that biodiesel fuel has experienced influenced the decision to expand the biodiesel tax incentive.
You may be wondering what has been driving the increased demand for biodiesel fuel? According to the online forum, Biodiesel, the fuel has not only helped to decrease the cost of fuel for Americans, but it has also increased the number of jobs in the United States as well. In 2017, the industry helped to create over 60,000 new jobs to help meet the demand. Additionally, it was found that Americans can save up to 17 cents per gallon for biodiesel fuel, which has also helped drive its success.
With the announcement that the tax incentive would be extended through 2020, producers in the biodiesel infrastructure and wind power areas will be able to expand on their tax incentives, to also ensure that they can continue producing the new fuel. This will not only continue to help our nation’s economy, but it can also help us to reduce our carbon footprint by nearly 50 percent. With countless benefits for both our economy and the world, the biodiesel industry will continue to help us grow as a country.