Trade and markets
 

Detail

Area
United States of America
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/12/2014
Policy Category
Renewable energy
Policy Instrument
Renewable energy policy
Description
Retroactively reinstated, for calendar year 2014, the biodiesel tax incentive that expired in January 2014.
Notes
In December 2014, the government retroactively reinstated the biodiesel tax incentive that had expired back in January 2014. The extension is limited to the 2014 calendar year. Under the policy, fuel producers enjoy a tax credit of 1 USD for every gallon of biodiesel sold. For 2014, thanks to the reinstatement of the incentive, biodiesel producers are estimated to get back approximately USD 1 million. The industry had asked for the measure to be extended through 2015, arguing that retroactive reinstatements do not give the biodiesel sector the certainty needed to invest and grow. Over the last six years, the tax measures was allowed to expire four times.