The American Soybean Association (ASA) recently urged farmers to contact their U.S. Congress members and ask them to cosponsor the House and Senate biodiesel tax credit bills.
The Senate bill was introduced by Sen. Chuck Grassley (R-IA) while the House bill was introduced by Rep. Kristi Noem (R-SD). Both bills, called the American Renewable Fuel and Job Creation Act of 2017, would extend the biodiesel tax credit for three years and restructure it to a producer’s credit intended to promote domestic production.
The last biodiesel bill expired in 2016. Under the bill, imported biodiesel blended in the United States qualified for the $1 per gallon incentive.
“Biodiesel production benefits soybean farmers and the livestock industry,” ASA said. “Approximately half of U.S. biodiesel is produced from soybean oil that is a by-product of soybean production, which is driven by demand for protein meal (soybeans are 80% meal and 20% oil). In addition, rendered animal fat is a significant feedstock for biodiesel and renewable diesel, further benefiting our livestock industry partners.”
This year, it is forecasted a third of the U.S. biodiesel market, one billion gallons, will be imported.
The Senate bill has 15 cosponsors and the House bill has six. Past biodiesel bills received at least 35 cosponsors.
As of June 1, 46 letters had been sent through ASA’s Soy Action Center.