US House passes biodiesel tax extension; moves to Senate June 7th
Today, the House of Representatives passed the American Jobs and Closing Tax Loopholes Act, which includes the biodiesel tax credit extension, retroactive to January 1, 2010, and expiring December 31, 2010.
The following statement was received from Renewable Energy Group:
“Today the U.S. House of Representatives have finally followed through on their commitment to green-collar jobs and protecting our environment by passing the biodiesel blenders tax credit as part of the American Jobs and Closing Tax Loopholes Act. We applaud their actions today to move our biodiesel tax credit one step closer to reinstatement as this bill now goes to the Senate for consideration. REG continues to monitor the status of H.R. 4213 and urge our Senators to pass the biodiesel tax credit when they return June 7th.”
The Iowa Biodiesel Board said:
On behalf of the state’s biodiesel plants, nearly half of which are idled or shuttered, the Iowa Biodiesel Board today applauded the U.S. House of Representatives for passing a bill that included extension of the federal biodiesel tax incentive.
Among other things, the American Jobs and Closing Tax Loopholes Act retroactively extends the biodiesel tax incentive to December 31, 2010. The measure passed the House by a 215 to 204 margin.
Randy Olson, IBB executive director, commended the House and urged quick action from the Senate on the bill when it returns from the Memorial Day break.
“During a time when we are so vividly reminded of the consequences of our addiction to oil, it‚s tragic that we are letting our biodiesel refineries die,” Olson said. “Biodiesel is one of the few tangible opportunities our nation has to produce its own renewable, biodegradable fuel. But we are watching it slip through our fingers.”
“Iowa’s 15 biodiesel plants have the ability to produce about 325 million gallons of biodiesel a year. However, about half of them are idled or closed, and most of the others are operating at greatly reduced capacity.”
The Other Side
Steve Forbes, writing at FOX News: “This week Senator Max Baucus (D-Mont.) and Representative Sander Levin (D-Mich.) unveiled their American Jobs and Closing Tax Loopholes Act. They and their fellow Democrats are pushing to pass this legislation before Memorial Day. The bill is an economic disaster. It will destroy jobs and harm capital creation. Even in the best of times, such an act would be extremely hurtful to the economy. Under these circumstances, it’s sheer destructive folly.”
Holding biodiesel hostage to out-of control deficit spending
Philip Brasher, Des Moines Register: “The biodiesel subsidy isn’t controverisal. But the legislation, which includes an extension of unemployment benefits and a variety of tax provisions has been stalled because of concerns about increasing the federal budget deficit.
Sen. Charles Grassley, R-Ia., highlighted the inaction on the measure by trying to get a vote last night on a standalone bill for a one-year extension of the biodiesel provision. But Democrats objected, with assurances that the biodiesel measure would get passed eventually. Jobs in the biodiesel industry “have fallen victim to a tactic used by the Democratic leadership to hold this popular and noncontroversial tax provision hostage to out-of-control deficit spending here in Washington,” Grassley said.”
What’s in the bill, exactly?
Here’s a summary of the bill from the House Ways and Means Committee.
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