July 28, 2014 SIGN IN | REGISTER

Startup’s Fate Relies on Tax Credit

Bill Clark/CQ Roll Call
DC Biofuels President and CEO Wendell Jenkins said his biodiesel creates an 80 percent reduction in greenhouse gases when compared to traditional diesel.

In addition to a cleaner brand of fuel — Jenkins said his biodiesel creates an 80 percent reduction in greenhouse gases when compared to traditional diesel — DC Biofuels would also create jobs. Jenkins estimates his plant would create 25 jobs in the District and another 25 jobs for suppliers and distributors in the area.

Peterson also touts the tax credit as a job-creating incentive.

“Increasing the production of renewable energy is vital to creating jobs and growing our rural economy,” he said. “Unfortunately, by allowing the biodiesel tax credit to lapse, we’ve already witnessed a loss of jobs and production.”

Though Jenkins is looking to hire Washington residents, his commitment to operating locally extends beyond this. DC Biofuels would also collect local waste products and provide its biodiesel to school buses and trucks in the area.

“We’re not just creating jobs in D.C., we’re creating a whole new taxpaying entity,” he said. “But you have to give entrepreneurs something they can depend on. I understand there are budget issues, but you have to look at the future.”

While the House bill has bipartisan support, Congress has focused more on cost-cutting measures lately.

“The budget, that’s the biggest problem,” Peterson said. “It’s tough in this day and age to convince our colleagues to maintain tax credits. We’re just working on building support to convince our colleagues that this isn’t a huge amount of money and it could contribute to economic growth while getting people back to work.”

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