Congress set to vote on a budget deal that includes a crucial tax credit for Biodiesel this week. This credit has become life or death for the US biodiesel industry due the drop in the price of petroleum oil. Please call or write your congresspersons and senators today and ask them to please support the 2 year biodiesel producer’s tax credit extension.
Here’s what you can do, thank you for the support.
Contact your Senator;
Contact your Representative;
Send a letter/ email to your lawmaker:
Dear Rep./Sen. _______________:
Recently, lawmakers in the House and Senate introduced legislation to reinstate the federal biodiesel excise tax credit retroactively from January 1, 2015 and reform it to a producer’s credit beginning next year. As a stakeholder in the biodiesel industry, I urge you to support quick passage of a tax extenders package that includes a multi-year (minimum two year) biodiesel tax credit and a switch to a biodiesel producer’s tax credit.
The House bill (H.R. 4181) was introduced by Reps. Kristi Noem and Bill Pascrell, while the Senate version (S. 2353) was introduced by Senators Charles Grassley and Maria Cantwell as an update to their earlier legislation that was overwhelmingly approved with bi-partisan support by the Senate Finance Committee in July.
The $1-per-gallon biodiesel tax incentive lapsed on Jan. 1, 2015, marking the fourth time in six years that the incentive has expired. Reform has been long advocated by the U.S. biodiesel industry and supporters, as under the existing structure of the credit, biodiesel produced by foreign companies overseas can qualify for the tax incentive if it is blended in the U.S.
While the blender’s tax credit has benefitted the domestic biodiesel industry helping it grow and be more cost competitive, it has also generated a flood of imports in recent years, sending several hundred million dollars in U.S. tax breaks to foreign entities – often in addition to subsidies that the foreign fuels receive in their home countries. U.S. tax dollars and energy policy should be aimed at incentivizing domestic production. Subsidizing foreign manufacturing is obviously not the intent of Congress, and we should close this loophole by switching to a domestic production credit, consistent with other domestic manufacturing and production tax incentives.
According to the Congressional Budget Office, this change would save U.S. taxpayers some $90 million per year. It will also streamline administration of the incentive by the IRS to prevent waste, fraud and abuse.
As a voter and a stakeholder in the U.S. biodiesel industry, I urge you to act quickly on this important legislation.