As the biodiesel tax incentive expiration date draws near, a new analysis calculated the economic benefits of the renewable fuel supported by the biodiesel tax credit that was enacted in 2005. Since then, biodiesel production has grown to nearly 1.8 billion gallons, thanks in part to the $1/gallon tax credit. The report, conducted by Capital Policy Analytics on behalf of the National Biodiesel Board (NBB), says the annual environmental benefits total $4.3 billion from replacing petroleum-based diesel with soybean-based biodiesel. The biodiesel industry supports soybean farmers, too, contributing roughly 13% of value to every bushel of U.S. soybeans. The report also highlights the risk of allowing the biodiesel tax credit to expire at the end of 2022 and the negative impact it would have on the U.S economy.

The renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. NBB states that the $1 tax credit is a remarkably effective way to support the homegrown fuel.

Read more on biodiesel benefits here.