ACTION ALERT: Legislation Introduced to Extend and Reform the Biodiesel Tax Incentive Through 2019
There is a way to save U.S. taxpayers $90 million and create a diverse domestic energy supply, which will provide energy security, and bolster our rural economies.
It is H.R. 5240, the Biodiesel Tax Incentive Reform and Extension Act of 2016. This legislation would extend the $1-per-gallon tax credit for biodiesel through the end of 2019 and reform the credit from a blender’s credit to a producer’s credit for fuel using U.S. commodities.
However, without congressional action the credit will expire at the end of this year.
The current structure of the biodiesel tax incentive as a blender’s credit increasingly allows foreign producers to access the credit if their fuel is blended in the U.S. Subsidizing foreign commodities is not the intent of Congress.
This reform will support domestic production and ensure that economic benefits will pass through to our nation’s soybean, canola and livestock producers.
Your support is needed to extend the tax credit and help close this loophole. It will ensure energy security and strengthen our rural communities.
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