Press Contact: T.J. Page

515-252-6249

Century of Big Oil Tax Subsidies in Permanent Law

JOHNSTON, IOWA – Today U.S. Senators Chuck Grassley (R-Iowa) and Maria Cantwell (D-Wash.) and U.S. Representatives Rod Blum (R-Iowa), Kristi Noem (R-S.D.), and Bill Pascrell (D-N.J.) introduced companion legislation to reinstate the biodiesel tax credit through 2016.  The bills would convert the tax credit to a production tax credit in 2016, and includes technical updates to earlier legislation passed by the Senate Finance Committee in July of this year.

Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw issued the following statement regarding the legislation:

“We applaud Senator Grassley and Representative Blum for leading the charge to reinstate the biodiesel tax credit.  Ramping up biodiesel production means more high-paying jobs in Iowa and better prices for Iowa’s farmers and livestock producers.  This legislation will help biodiesel compete against petroleum products that have been subsidized for more than a century.  It will also save the taxpayers money by reforming the credit to cover U.S. production and not foreign biodiesel imports.  Now, Congress needs to pass this legislation before adjourning for the holidays.”

Iowa is the nation’s leader in renewable fuels production. Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually. In addition, Iowa has 43 ethanol refineries capable of producing 3.9 billion gallons annually, including nearly 55 million gallons of annual cellulosic ethanol production capacity.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.

###

For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org