Soy growers are encouraged to contact their members of the U.S. House of Representatives and urge them to cosponsor the Biodiesel Tax Credit legislation in the House and Senate.

Rep. Kristi Noem (R-SD) and Rep. Bill Pascrell (D-NJ) introduced updated legislation (HR 5240) 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. Sen. Grassley (R-IA) and Sen. Cantwell (D-WA) are introducing identical legislation in the Senate.

The American Soybean Association (ASA) and the U.S. biodiesel industry support restructuring the tax incentive to a domestic producer’s credit and we need to build the number of co-sponsors of the bills to demonstrate broader support to House and Senate leaders.

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.

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.

If you have any questions or get any feedback from your House or Senate offices, please contact Tom Hance in the ASA Washington office at thance@soy.org or 202-969-7040.