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Biodiesel Board applauds Senate tax credit bill

The National Biodiesel Board is applauding the introduction of a biodiesel tax credit bill that would convert the blender’s credit for biodiesel to a one dollar-per-gallon production credit.

Anne Steckel with the National Biodiesel Board says the bill creates a level playing field for U.S. biodiesel producers by preventing the subsidization of foreign manufacturers.

“Moving the credit to producers would really ensure that domestic production receives domestic tax dollars,” Steckel says. “Unfortunately, the way is bill is written currently, as a blender’s tax credit, it incentivized foreign production to receive our U.S. tax credit.”

Steckel says the reform would not block imported biodiesel from entering the market. But it could reduce those imports and help spur more domestic production.

“Most of our plants are only running at 65 percent capacity,” she says. “So having a stronger shift towards domestic production will not only better utilize our plants, but certainly support domestic jobs right here at home. Which is what Congress intended when they did put this tax credit in originally.”

The bill also extends the tax credit for three years.

AUDIO: Anne Steckel

 

The Senate bill has 16 sponsors, including Iowa Senators Chuck Grassley and Joni Ernst and Indiana Senator Joe Donnelly.

“U.S. tax policy should support U.S. products and U.S. jobs,” Grassley said in a news release. “This bipartisan bill would end a system that gives many foreign producers a leg up over U.S. producers and give certainty to the biodiesel industry.”

In a statement, Ernst said the bill “will ensure that we are not inadvertently supporting foreign-produced biodiesel. By investing in our domestic energy production, we can promote job creation and stability for the many Iowans who work in the industry and the surrounding farming communities.”

Donnelly also issued a statement, saying the legislation will “promote the use of American-grown soybeans and other domestic sources of renewable biodiesel, helping to reduce our nation’s reliance on fuels imported from abroad.”

AUDIO: Excerpt from Sen. Grassley’s weekly conference call with ag reporters

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