Soybean growers urged to contact Congress on biodiesel tax credit

The American Soybean Association is asking soybean growers to contact their local House and Senate offices in support of the biodiesel tax credit reinstatement before Congress concludes business for the year.

The multi-year extension of the biodiesel tax credit is included in an end-of-year tax extenders package.

Last week, a bill was introduced by Reps. Kristi Noem (R-SD) and Bill Pascrell (D-NJ), while the Senate version was introduced by Sens. Charles Grassley (R-IA) and Maria Cantwell (D-WA). The updated stand-alone, marker legislation was designed to reinstate the biodiesel tax credit and reform it to a producer’s credit. This stand-alone bill also includes an update to make sure biodiesel used on farms or off-road applications will not incur excise tax.

The American Soybean Association wants Senators and Representatives to support the Grassley-Cantwell and/or Noem-Pascrell bills as support for the biodiesel tax credit in the tax extenders package. If passed, it would continue to be a blender’s credit for the remainder of 2015 and become a producer’s credit in 2016. As a producer’s credit, it would restrict the ability of foreign-subsidized biodiesel to displace biodiesel from the United States.

The American Soybean Association and National Biodiesel Board support the restructuring of this tax credit.