Grassley, Blum Lead the Charge For Tax Fairness For Biodiesel
December 15, 2015 - Issue #214View Full Issue
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.
“We applaud Senator Grassley and Representative Blum for leading the charge to reinstate the biodiesel tax credit,” stated Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “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.”
“The biodiesel industry cannot grow and support good-paying jobs without some level of predictability on tax policy, and the legislative clock is winding down,” said National Biodiesel Board (NBB) Vice President of Federal Affairs Anne Steckel. “This tax incentive has strong bipartisan support, as demonstrated by the bills introduced today. It’s good for the economy, it’s good for the environment and it’s good for consumers. And importantly the reforms included in today’s bills will appropriately focus the incentive on U.S. production…This bill, when passed into law, will go a long way toward creating biodiesel jobs across the country and reducing our dependence on foreign oil.”
Biodiesel has displaced about 1.8 billion gallons of petroleum diesel in the U.S. in each of the past two years – and more than 8 billion gallons over the last decade. It is produced in nearly every state in the country and is supporting more than 62,000 jobs. Iowa is the nation’s leading biodiesel producer, with 13 plants capable of producing about 315 million gallons annually.