by DeEtte L. Loeffler, J.D., LL.M., Taxation
The federal $1 per gallon tax credit for biodiesel is set to expire on December 31, 2016. Loss of this credit may harm California’s eight biodiesel producers, including San Diego’s New Leaf Biofuel. Democrats in the House of Representatives have introduced legislation to extend the credit for an additional 2 years. However, a simple extension of the existing tax credits may be inadequate, due to increasing competition by foreign producers. In addition, such credits may face a difficult renewal process given President-elect Trump’s public statements in support of increased oil drilling and questioning the scientific accuracy of climate change research.