Jun 09, 2016
Soy growers are encouraged to contact their members of the U.S. House of Representatives and urge them to cosponsor H.R. 5240, the Biodiesel Tax Credit. Rep. Kristi Noem (R-SD) and Rep. Bill Pascrell (D-NJ) introduced the updated legislation in the U.S. House of Representatives to extend the biodiesel tax credit for three years (2017-19) and restructure it to a producer’s tax credit.
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 Reps. Noem and Pascrell. 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.
We need to build the number of cosponsors of the bill to demonstrate broader support to House leaders. In previous years over 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.
Thus far, the members that have signed-on as cosponsors are: Reps. Peterson (D-MN), Loebsack (D-IA), Blum (R-IA), King (R-IA), Young (R-IA) Adrian Smith (R-NE), Jason Smith (R-MO), Bishop (D-GA), Guthrie (R-KY), Kuster (D-NH), and Takai,(D-HI). You can contact these offices and express appreciation for their support.
Click here to access the Soy Action Center, which will connect you with your House offices.
If you have any questions or get any feedback from your House offices, please contact Tom Hance in the ASA Washington office at firstname.lastname@example.org or 202-969-7040.