Print

Biodiesel tax credit included in proposed tax extenders package

By The American Soybean Association | April 02, 2014

As part of its proposed tax extenders package released April 1, the Senate Finance Committee included two items critical to soybean farmers, including a two-year extension of the $1-per-gallon biodiesel tax incentive, and a reinstatement of the pre-2014 expensing amounts for farm infrastructure and equipment under Section 179. Both issues are among the American Soybean Association’s key policy priorities for the coming year, and ASA First Vice President Wade Cowan, a farmer from Brownfield, Texas, issued the following statement on the committee’s proposal:

“More than 98 percent of American farms are owned by families, making ours an industry of small businesses, and like our counterparts on main streets across the country, farmers have a crucial stake in the country’s tax structure. That’s why [this] proposal from the Senate Finance Committee is such an important one for agriculture. It extends the biodiesel tax credit through the end of 2015, and reinstates the amounts we can expense under Section 179. Both elements enable us to compete and succeed in the face of growing competition.

“The extension of the biodiesel tax credit is huge. Biodiesel blenders create a renewable and safe domestic energy source for our country and a valuable market for the soybean oil American farmers produce. The credit further encourages the development and sustained success of the biodiesel marketplace, and much credit goes to Chairman Wyden and Ranking Member Hatch and specifically Sens. Grassley and Cantwell for recognizing the importance of the biodiesel tax incentive and including it in their proposal. The industry has been operating in the absence of the credit since the end of the fiscal year in September, and we’ve seen the biodiesel industry’s production dip and progress stall in the absence of this tax credit in the past, so this proposal is a welcome first step toward putting the industry back on track for the next two years.

“The proposal’s Section 179 reinstatement is also important. This enables farmers and other small business owners to expense investments made in new technology, equipment and infrastructure in their operations. Given the land-based and capital-intensive nature of farming, not to mention the ever-advancing technology we need to farm sustainably and competitively, this program helps us to stay on the cutting edge of our industry.

“We hope that the full committee will take up and advance this proposal quickly, and we call on the full Senate and the House to pass these provisions in the interest of farmers and our fellow small business owners nationwide.”

 

 

3 Responses

  1. Peter Brown

    2014-04-02

    1

    It's not about the soy farmers, it's about biodiesel that can be made from an ever widening number of plants, trees, wastes and objects. It's about having a stable platform and predictable revenue sources to allow us the luxury to talk to investors, bankers and an increasingly interested public about the benefits of our products. It's about our competitors, with billions at their disposal, who take dead bang aim at our world and dare us to protest the destruction being wrought. The on and off tax credit, now you see it now you don't tax credit is the direct manifestation of politics at its most venal. We are discussing tax credits, it must be an election year in farmers markets of America. Or maybe the Tar Sands need more money so we drop a bone off on the veggie burners. BP needs more forgiveness so we give Berkeley a few more millions. Every time I see that tax credit show up in politicians' bread baskets to the people I cringe because it only means we will be taking it in the shorts very soon once again. How about a simple, biofuels are good, they need encouragement and support as much as all those starving petroleum companies, we hereby grant them a one dollar a gallon subsidy in perpetuity for taking the risks in producing a product that will stave off global warming, slow greenhouse gasses, provide jobs, clean up waste water and use stuff that no one else will even invite into their homes.

  2. Dylan Bacon

    2014-04-03

    2

    A very welcome sight indeed, that the tax credit might be renewed. Many thanks to the committee people and senators fighting for the Biodiesel industry, which consists mostly of "Mom and Pop" home producers. It sickens me to see a hoard of politicians interested only in maintaining their positions. FYI: We agriculturists are your constituents, too! This incentive is critical not only to providing for the success of the rising industry; it has and will contribute greatly to reducing American dependence on petroleum fuel and making the world a cleaner place to live!

  3. Mike Buleza

    2014-04-19

    3

    Why did no one bring up a $.50 cents per gallon credit as a compromise to insure it will be pushed thru, not just for two years, but allowing this market to stabilize for the next 5 years. With the wvo pricing currently hovering around $2.50 per gallon, this $.50 cent push would go a long ways to sustainability for just about everyone in this industry? Something is better than what we have endured over and over these past few years.. and definitely better than nothing!

  4.  

    Leave a Reply

    Biodiesel Magazine encourages encourages civil conversation and debate. However, we reserve the right to delete comments for reasons including but not limited to: any type of attack, injurious statements, profanity, business solicitations or other advertising.

    Comments are closed

 
Array ( [PATH] => /sbin:/usr/sbin:/bin:/usr/bin [PP_CUSTOM_PHP_INI] => /var/www/vhosts/biodieselmagazine.com/etc/php.ini [FCGI_ROLE] => RESPONDER [REDIRECT_REDIRECT_PP_CUSTOM_PHP_INI] => /var/www/vhosts/biodieselmagazine.com/etc/php.ini [REDIRECT_REDIRECT_STATUS] => 200 [REDIRECT_PP_CUSTOM_PHP_INI] => /var/www/vhosts/biodieselmagazine.com/etc/php.ini [REDIRECT_STATUS] => 200 [HTTP_HOST] => biodieselmagazine.com [HTTP_X_REAL_IP] => 54.83.82.191 [HTTP_X_FORWARDED_FOR] => 54.83.82.191 [HTTP_X_ACCEL_INTERNAL] => /internal-nginx-static-location [HTTP_CONNECTION] => close [HTTP_ACCEPT_ENCODING] => x-gzip, gzip, deflate [HTTP_USER_AGENT] => CCBot/2.0 (http://commoncrawl.org/faq/) [HTTP_ACCEPT_LANGUAGE] => en-us,en-gb,en;q=0.7,*;q=0.3 [HTTP_ACCEPT] => text/html,application/xhtml+xml,application/xml;q=0.9,*/*;q=0.8 [SERVER_SIGNATURE] =>
Apache Server at biodieselmagazine.com Port 80
[SERVER_SOFTWARE] => Apache [SERVER_NAME] => biodieselmagazine.com [SERVER_ADDR] => 64.207.180.117 [SERVER_PORT] => 80 [REMOTE_ADDR] => 54.83.82.191 [DOCUMENT_ROOT] => /var/www/vhosts/directory.biodieselmagazine.com/httpdocs/biodieselmagazine.com [SERVER_ADMIN] => jkeller@bbiinternational.com [SCRIPT_FILENAME] => /var/www/vhosts/directory.biodieselmagazine.com/httpdocs/biodieselmagazine.com/app/webroot/index.php [REMOTE_PORT] => 57999 [REDIRECT_QUERY_STRING] => url=articles/41089/biodiesel-tax-credit-included-in-proposed-tax-extenders-package [REDIRECT_URL] => /app/webroot/articles/41089/biodiesel-tax-credit-included-in-proposed-tax-extenders-package [GATEWAY_INTERFACE] => CGI/1.1 [SERVER_PROTOCOL] => HTTP/1.0 [REQUEST_METHOD] => GET [QUERY_STRING] => url=articles/41089/biodiesel-tax-credit-included-in-proposed-tax-extenders-package [REQUEST_URI] => /articles/41089/biodiesel-tax-credit-included-in-proposed-tax-extenders-package [SCRIPT_NAME] => /app/webroot/index.php [PHP_SELF] => /app/webroot/index.php [REQUEST_TIME] => 1416756775 )