As we approach the last quarter of the year, the American Soybean Association (ASA) continues efforts to get Congress to take up a tax extenders package that includes extension and restructuring of the biodiesel tax credit before it expires at the end of 2016. ASA partnered with a diverse group of over 50 organizations and industries in a letter to Congress urging action on multi-year extension of the tax provisions currently slated to expire at the end of 2016. Following that letter, House Majority Leader Kevin McCarthy (R-CA) indicated his expectation that tax extenders will be on the agenda for the lame duck session, and Senate Majority Leader Mitch McConnell (R-KY) has stated that he is committed to acting on a tax extenders package this year as well.

In addition to the biodiesel tax credit, it is possible that other tax provisions of interest to agriculture could be addressed. Rep. Rick Crawford (R-AR) has introduced the Farm Risk Abatement Management (FRAME) Act, which would allow farmers to make $50,000 in tax-deductible contributions per year to farm disaster savings accounts. Rep. Crawford is seeking to add this new proposal to an extenders bill if possible, or address it in the next farm bill or in future tax packages.

Most immediately, ASA needs to bolster the case and support for the biodiesel tax credit, and we need want to increase the number of cosponsors on the House and Senate marker bills.  Please contact your members of the U.S. House of Representatives and urge them to cosponsor H.R. 5240 introduced by Rep. Kristi Noem (R-SD) and Rep. Bill Pascrell (D-NJ).  Likewise, Senators are urged to cosponsor S. 3188 introduced by Sen. Chuck Grassley (R-IA) and Sen. Maria Cantwell (D-WA). These bills would provide a 3 year extension (2017-2019) of the biodiesel tax credit and shift it from a blender’s to a production credit to further promote domestic biodiesel production.

We need to build the number of cosponsors of the bill to demonstrate broader support to House and Senate leaders and convince them of the need to address expiring tax credits during the lame duck session in December. Currently, there are 15 cosponsors of the Senate bill and 15 cosponsors of the House bill, all listed below.  We are particularly focused on increasing the number of cosponsors in the House.  In previous years, more than 35 House members have cosponsored biodiesel tax credit legislation and/or signed letters of support. We need to match or exceed that number for cosponsors of H.R. 5240. If a Member of Congress from your state is already a cosponsor, please contact them to express your appreciation and ask them to weigh-in with House or Senate Leadership in support of a tax extenders package in the lame duck session in December.

Current House Sponsors/Cosponsors:
Noem (R-SD)
Pascrell (D-NJ)
Peterson (D-MN)
Loebsack (D-IA)
Blum (R-IA)
King (R- IA)
Young (R- IA)
Adrian Smith (R-NE)
Jason Smith (R-MO)
Luetkemeyer (R-MO)
Wagner (R-MO)
Guthrie (R-KY)
Bishop (D-GA)
Takai (D-HI)
Kuster (D-NH)
Cicilline (D-RI)

Current Senate Sponsors/Cosponsors:
Grassley (R-IA)
Cantwell (D-WA)
Blunt (R-MO)
Roberts (R-KS)
Heitkamp (D-ND)
Thune (R-SD)
Whitehouse (D-RI)
Ernst (R-IA)
Donnelly (D-IN)
Kirk (R-IL)
Heinrich (D-NM)
Hirono (D-HI)
Murray (D-WA)
Franken (D-MN)
Klobuchar (D-MN)
Markey (D-MA)

The current biodiesel blender’s tax credit expires at the end of 2016. Under the current blender’s structure, biodiesel imported to the U.S. qualifies for the $1 per gallon incentive when it is blended in the U.S. – even when the imported fuel often already receives incentives in its country of origin.  ASA and the U.S. biodiesel industry supports restructuring the tax incentive to a domestic producer’s credit, as proposed by Rep. Kristi Noem (R-SD) and Rep. Bill Pascrell (D-NJ).  Biodiesel and Renewable Diesel imports last year totaled approximately 670 million gallons – or nearly a third of the U.S. market. That total is expected to grow so long as foreign fuel that is already subsidized in its country of origin can be shipped to the U.S. and get an additional $1 per gallon incentive.