|IBB News Releases|
Federal legislation to extend biodiesel tax incentive more critical than ever
ANKENY, Iowa – Now is the time to keep support strong for biodiesel, the nation’s first advanced biofuel.
That’s the message sent from the Iowa Congressional Delegation this week from Washington, D.C. Both Senators Chuck Grassley (R-IA) and Tom Harkin (D-IA) have sponsored legislation to extend the biodiesel tax incentive for three years, a move that would support thousands of new U.S. jobs and spur economic growth in Iowa and across the country. In addition, all five Iowa Congressmen have signed on as co-sponsors: Leonard Boswell (D), Bruce Braley (D), Steve King (R), Tom Latham (R), and Dave Loebsack (D).
Iowa is the first state to have a clean sweep of co-sponsors to the legislation. The Iowa Biodiesel Board commended the delegation for its commitment to biodiesel, which is still in relatively early stages of its development.
“American-made biodiesel will displace almost a billion gallons of petroleum made from foreign oil this year, and 300 million of those gallons could come from Iowa plants,” said Randy Olson, IBB executive director. “Green energy could lead us out of this recession, and biodiesel is a significant part of that. We applaud our delegation for sharing this vision.”
The Biodiesel Tax Incentive Reform and Extension Act would extend the $1 per gallon tax credit from 2012 through 2014, giving producers and investors critical market certainty to move forward with expansion plans. In addition, the bill would reform the biodiesel tax incentive from a blenders excise tax credit to a production excise tax credit. This will focus the incentive on domestic biodiesel producers, make the tax program easier to administer, and help protect against fraud.
A new economic study commissioned by the National Biodiesel Board found that renewing the tax credit - along with the regulatory framework established last year by the EPA's Renewable Fuel Standard program - would spur the industry into supporting more than 74,000 jobs by 2015, generating some $4 billion in household income circulating throughout the economy and $7.3 billion in GDP.
Already this year, with the tax credit renewed in December after lapsing in 2010, the industry is on pace for record production. Iowa is home to 15 biodiesel plants with the capacity to produce about 300 million gallons a year.
Biodiesel is an advanced biofuel, made from agricultural byproducts and co-products, such as soybean oil. The Iowa Biodiesel Board is a state trade association representing the biodiesel industry.
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