The biodiesel tax incentive is set to expire on December 31, 2009. The tax incentive is vital to the U.S. biodiesel industry and its extension is a top priority, reports the American Soybean Association.
If the biodiesel tax incentive is allowed to expire, the production and use of biodiesel in the U.S. will come to a halt, argues ASA. The economics of biodiesel at this stage will simply not work absent the federal tax incentive. ASA lobbyists say it is still unclear when, or if, Congress will act on tax legislation that addresses the biodiesel tax incentive.
Senators Maria Cantwell, D-Wash., and Charles Grassley, R-Iowa, have introduced S. 1589, the Biodiesel Tax Incentive Reform and Extension Act of 2009. This bill would extend the credit for five years and restructure it as a production excise tax credit. ASA has asked its members to contact their Senators to ask them to add their name as a cosponsor of S. 1589. Senator Dick Durbin, D-Ill., has already agreed to co-sponsor the bill.