ASA Asking For Support Of Biodiesel Tax Credit Renewal

The biodiesel tax incentive expired on December 31, 2009. The $1-per-gallon tax credit had been renewed every year since 2004, and the number of gallons produced since that time has increased from 25 million, to 545 million gallons in 2009.

Without the tax credit, biodiesel producers could struggle to produce a price-competitive fuel. Since the tax expired, biodiesel production and consumption has dramatically declined, biodiesel production facilities have closed, over 23,000 biodiesel industry workers have lost their jobs, and surplus soybean oil stocks continue to increase as a result of lower demand.

The U.S. House of Representatives approved H.R. 4213, the Tax Extenders Act of 2009, in December 2009, and the Senate passed its version of H.R. 4213, the American Workers, State and Business Relief Act in early March 2010. Both versions of the bill include retroactive extension of the vital biodiesel tax credit through December 31, 2010. The House and Senate must now reconcile the differences between the two versions of the bill approved by the respective chambers.

The American Soybean Association (ASA) is urging supporters to contact their senators and representatives and ask them to contact their respective leadership to stress that the biodiesel tax incentive extension must be enacted before the Memorial Day recess.

For more info on ASA’s tax credit renewal campaign, go to SoyGrowers.com.