Negotiations to add energy and other unrelated tax items, including the biodiesel tax credit, to the Federal Aviation Administration (FAA) reauthorization bill fell apart this week and Senate leaders now plan to move a “clean” bill without any tax items that are not related to the FAA.

The size of the tax title and the number of entities clamoring to get in the FAA bill caused it to become overloaded and there was not enough support in the Senate to pass an FAA bill with a large tax title.

The American Soybean Association (ASA) appreciates everyone who made calls or contacted their Senate offices to express support for the biodiesel tax credit. These efforts were beneficial in garnering commitments from some Senators to cosponsor the Grassley/Cantwell biodiesel tax credit extension and restructuring. The contacts also serve to reiterate the importance to soybean farmers and the level of support that exists for the biodiesel tax credit.

Senate leaders have indicated their intent to address a tax extenders package later this year, however it will be more challenging than previous years since some of the larger tax issues were permanently addressed in the 2015 tax package and many Members of Congress have voiced opposition to re-visiting “tax extenders” or specific tax credits unless and until there is comprehensive tax reform. ASA and our biodiesel industry partners will continue to push for extension and restructuring of the biodiesel tax credit before it expires on Dec. 31, 2016.