The current biodiesel tax incentive is set to expire on December 31, 2009. Well aware of this, the American Soybean Association (ASA) is calling on Congress to pass an extension of the credit before the current one expires.The Mid-South Farmer online posts that the ASA believes the “tax incentive is vital to the U.S. biodiesel industry and its extension is a top priority [.]” The ASA argues that allowing the tax incentive to expire will essentially cause the use and production of biodiesel fuel to stop. The ASA believes the “economics of biodiesel at this stage will simply not work absent the federal tax incentive.” The soybean organization acknowledges that it is not clear when Congress will take up an extension.
In the Senate, a bipartisan bill has been introduced by Sens. Maria Cantwell (WA) and Charles Grassley (IA) that would extend the credit for five more years “and restructure it as a production excise tax credit.” The bill is S. 1589, the Biodiesel Tax Incentive reform and Extension Act of 2009.
To read the bill click here.
To read the Mid-South Farmer post click here.
Posted: 11/09/09
