On Wednesday, November 13, NEFI joined 35 national and state organizations in a letter to Congressional leaders urging action during the lame duck session on expiring renewable and alternative fuel tax incentives. These include the biodiesel and renewable diesel blenders' tax credit (BTC) and the alternative fuel mixture credit for use of propane as a transportation fuel.

These incentives are scheduled to be replaced by the so-called Inflation Reduction Act's Clean Fuel Production Credit (45Z) on January 1, 2025, but the Treasury Department has yet to issue final regulations for this complex new program and is not expected to do so until next year. This delay has resulted in significant market uncertainty, particularly as we head into the heating season.

Our coalition is requesting a modest, short-term extension of existing credits to provide market stability and breathing room for a broader energy tax debate next year under the new administration and Congress. In a similar letter, Clean Fuels Alliance America, the American Soybean Association, and state soybean associations also called on Congress to extend expiring credits and endorsed the NEFI-backed Biodiesel Tax Credit Extension Act (H.R.9060). We are excited to have their support!

The outlook during the lame duck session remains unclear. Much depends on whether lawmakers decide to wrap up year-end spending and other outstanding items to allow the new Congress to begin with a clean slate in January or if the Republicans prefer a short-term funding bill that pushes major decisions into next year when they will have more leverage to shape policy outcomes.

What we do know is that momentum seems to building toward business-friendly legislation. That momentum can be fueled and directed by constituents making their wishes known. Your advocacy has made a difference in the past and it is needed again. Please click here to send a letter to your elected representatives telling them you support extending the renewable and alternative fuel tax credits.

For more information or if you have any questions, contact NEFI President & CEO Jim Collura at (202) 441-8857 or jim.collura@nefi.com.

Click Here to Read the Letter to Congress.

Click Here to Contact Your Elected Representatives.

Our thanks to the organizations that co-signed the letter to Congress: