Modification of Biodiesel Tax Credit

Washington, DC - Congressman John Shimkus (R, Illinois-19) has introduced legislation that will modify the current one dollar biodiesel blender tax credit, which will currently end December 31.  The new biodiesel tax credit would be a one dollar biodiesel production tax credit.

"This legislation matches legislation that has been introduced in the Senate and will ensure the continued domestic production of biodiesel," Shimkus said.  "This also makes the tax credit only available to domestic producers."

The legislation (HR 4070) provides the tax credit for five years.  In addition, small producers would be eligible for an additional ten cent tax credit per gallon.

Manning Feraci, Vice President of Federal Affairs for the National Biodiesel Board, said in testimony before Congress, "It is safe to assume that if the biodiesel tax incentive lapses, biodiesel production in the U.S. will halt or at a minimum be severely curtailed, and the energy security, environmental, and job creation benefits that the nation realizes from biodiesel production will be lost."

Shimkus added, "As a major alternative fuel, we need to continue supporting domestic production of biodiesel."

Congressman Earl Pomeroy of North Dakota is the main sponsor.  The Senate companion legislation (S 1589) was introduced by Senators Maria Cantwell of Washington and Chuck Grassley of Iowa.

###