WASHINGTON, DC —
Senator John Thune today expressed disappointment over the defeat of a biodiesel tax credit amendment offered by Senator Chuck Grassley (R-Iowa) by a vote of 41-58. The Grassley amendment would have extended the biodiesel tax credit, which expired in 2009, through December 31, 2010.
"Today's vote to extend the biodiesel tax credit was an opportunity for Congress to prove their commitment to creating jobs and growing our economy through clean, renewable, domestic energy production," said Thune. "With the national unemployment rate nearing 10 percent, we cannot afford to delay passage of this important extension that will immediately create jobs in South Dakota and beyond. The Senate's failure to pass the Grassley tax credit is a great disappointment for energy consumers and producers across our country."
The Grassley income tax credit for biodiesel and renewable diesel is comprised of three separate credits, including: a pure biodiesel credit of $1.00 per gallon of bio-diesel made, a biodiesel mixture credit of $1.00 per gallon of biodiesel used in a US trade or business, and a small agri-biodiesel producer credit of 10 cents per gallon of agri-biodiesel produced.
Thune has been a vocal supporter of renewable fuel tax credits and infrastructure development. He supported the creation of a national Renewable Fuels Standard, which requires the production and blending of biodiesel into our fuel supply. Unfortunately, during implementation of the biodiesel provision, the 2009 requirement was greatly reduced by the Environmental Protection Agency, which has also contributed to the low biodiesel demand and idled biodiesel plants across the country.
"Today's vote to extend the biodiesel tax credit was an opportunity for Congress to prove their commitment to creating jobs and growing our economy through clean, renewable, domestic energy production," said Thune. "With the national unemployment rate nearing 10 percent, we cannot afford to delay passage of this important extension that will immediately create jobs in South Dakota and beyond. The Senate's failure to pass the Grassley tax credit is a great disappointment for energy consumers and producers across our country."
The Grassley income tax credit for biodiesel and renewable diesel is comprised of three separate credits, including: a pure biodiesel credit of $1.00 per gallon of bio-diesel made, a biodiesel mixture credit of $1.00 per gallon of biodiesel used in a US trade or business, and a small agri-biodiesel producer credit of 10 cents per gallon of agri-biodiesel produced.
Thune has been a vocal supporter of renewable fuel tax credits and infrastructure development. He supported the creation of a national Renewable Fuels Standard, which requires the production and blending of biodiesel into our fuel supply. Unfortunately, during implementation of the biodiesel provision, the 2009 requirement was greatly reduced by the Environmental Protection Agency, which has also contributed to the low biodiesel demand and idled biodiesel plants across the country.