STATUS OF BIODIESEL TAX CREDIT
July 27, 2010
The U.S. House Committee on Ways and Means, the U.S. House committee with solo jurisdiction over matters relating to taxation, yesterday released a draft of The Domestic, Manufacturing and Energy Jobs Act of 2010. Please refer to the links below to review:
Legislative Text of the Draft Legislation
Summary of the Discussion Draft
Correspondence Revenue Table Prepared by the Joint Committee on Taxation
Among its provisions, the legislation would reinstate the biodiesel tax incentive for 2011. The summary provided by the U.S. House Committee on Ways and Means also indicates that the legislation would incorporate the 2010 extension if it has not been enacted by the time the Domestic Manufacturing and Energy Jobs Act of 2010 is considered. Specifically, the summary states:
“Biodiesel and renewable diesel. The proposal would reinstate for 2011 the per gallon tax credits and outlay payments for biodiesel and renewable diesel. The extension of these tax credits and outlay payments for 2010 has previously passed both the House of Representatives and the Senate at different times but has not become law. The extension for 2010 would be incorporated into this legislation if that extension has not been enacted by the time this legislation is considered. This proposal is estimated to cost $1.108 billion over 10 years.”
Neither the U.S. House Committee on Ways and Means nor the full U.S. House are expected to consider this legislation prior to the August recess, which for the U.S. House is scheduled to begin the week of August 2, 2010.
WHAT CAN YOU DO?
Do you think Congress should reinstate the biodiesel tax incentive and continue to realize the economic, energy security and environmental benefits that come from the production and use of biodiesel?
If your answer to this common-sense question is “yes,” then you should contact your Federal Elected officials immediately about this issue. For your Congressman, click HERE and for your Senators click HERE to get the contact information to reach out to your elected officials on this important issue.
Now more than ever, it is important for lawmakers to hear from you about this issue. Specifically:
1. The continued lapse of the biodiesel tax incentive is causing severe harm to the U.S. biodiesel producers, costing the nation jobs and hindering our ability to displace petroleum. Congress must retroactively reinstate the biodiesel tax incentive on the first available legislative vehicle.
2. The current situation highlights the need for a certainty in federal policy and tax policy. If your Congressman and Senators have not done so already, ask them again to cosponsor H.R. 4070 and S. 1589, legislation that would provide for a multi-year extension of a reformed biodiesel tax incentive.
BACKGROUND:
Biodiesel Public Policy Benefits: The biodiesel tax incentive has helped achieve the worthwhile policy goal of increasing the production and use of biodiesel in the U.S. In 2004, when the incentive was initially enacted, the U.S. produced 25 million gallons. In 2009, that number rose to 545 million gallons. There are compelling public policy benefits associated with the enhanced production and use of biodiesel in the U.S. Among the most are:
- The Biodiesel Industry is Creating Green Jobs and Making a Positive Contribution to the Economy;
- Biodiesel is Good for the Environment, reducing carbon pollution by up to 85 percent, according to the EPA;
- Biodiesel Reduces our Dependence on Foreign Oil.
The biodiesel tax incentive has helped achieve the desired goal of increasing
the domestic production and use of biodiesel, and in turn has helped the U.S. realize the energy security, economic and environmental benefits associated with displacing petroleum with domestically produced renewable fuels. These benefits, however, will be lost if Congress does not act in a timely manner to address the immediate issue facing the industry and retroactively extend the biodiesel tax incentive. |
