BioFuels Journal

Ankeny, IA—The Iowa Soybean Association (ISA) applauds the Senate passage March 10 of a jobs bill containing the reinstatement of the biodiesel blenders' tax credit.

The U.S. Senate approved H.R. 4213, the American Workers, State and Business Relief Act, which includes the extension of the $1/gallon biodiesel tax credit.

The bill calls for the tax credit to be retroactive (effective Jan. 1, 2010 to Dec. 31, 2010).

"We appreciate this important step in seeking reinstatement of the biodiesel tax credit," said ISA President Delbert Christensen, a soybean farmer from Audubon.

"Iowa soybean farmers have invested millions of dollars in helping create the biodiesel industry in Iowa, and this tax credit is vitally important to the viability of this industry.

"But we still have legislative work to do.

"This bill now needs to be reconciled with the House version."

With passage of H.R. 4213, the U.S. House and U.S. Senate must now reconcile the differences between the two versions of the bill approved by the respective chambers.

Both chambers will have to approve an identical bill before it can be presented to President Obama for his signature.

Therefore, timing for tax credit reinstatement is uncertain.

The biodiesel tax incentive makes biodiesel more competitive with petroleum diesel and lowers the cost of biodiesel to the end-consumer.

Biodiesel production has provided a significant market opportunity for U.S. soybean farmers.

A study by the United Soybean Board (USB) showed biodiesel adds at least 25 cents to the price of soybeans.

The biodiesel industry also provides jobs and economic development for rural communities, in addition to reducing U.S. dependence on imported petroleum.

Expiration of the biodiesel tax incentive on Dec. 31, 2009, essentially caused the production and use of biodiesel in the U.S. to cease.

It has placed thousands of jobs currently supported by the domestic biodiesel industry in immediate jeopardy.

Iowa has 15 biodiesel plants.

Many of them have not been operating while others have been operating at drastically reduced levels during the lapse of the tax credit and have had to lay off employees.

"The extension of the tax credit, coupled with the recently finalized RFS-2 will help ensure strong demand for biodiesel for the remainder of the year," said Christensen.

"However, since this is only a one-year extension, we will immediately have to begin the battle to seek a longer-term solution by securing a three- to five-year extension of the credit."

For more information, call 800-383-1423.

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• ISA

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