Action Alert From the American Soybean Association

Action Alert

Action Alert
From the American Soybean Association

Dear ASA Members & Supporters:

As you may know, the biodiesel tax incentive is set to expire on December 31, 2009. The tax incentive is vital to the U.S. biodiesel industry and its extension is a top priority for ASA. If the biodiesel tax incentive is allowed to expire, the production and use of biodiesel in the U.S. will come to a halt. The economics of biodiesel at this stage will simply not work absent the federal tax incentive. As we approach the end of the year, it is still unclear when, or if, Congress will act on tax legislation that addresses the biodiesel tax incentive.

Congressmen Earl Pomeroy (D-ND) and John Shimkus (R-IL) have introduced H.R. 4070 to extend the credit for five years and restructure it as a production excise tax credit. A strong show of support for this legislation is necessary if we are going to successfully extend the biodiesel tax incentive. Thus, it is vital that you contact your Congressman today and ask him or her to add their name as a cosponsor of H.R. 4070.

Below is a message that we have provided for use in contacting your Congressman to urge support and co-sponsorship of H.R. 4070.

Click here to find your Congressman’s contact information.

Dear Congressman/woman ______________:

As a soybean farmer and member of the American Soybean Association (ASA), I want to urge your support and co-sponsorship of H.R. 4070, introduced by Congressmen Pomeroy and Shimkus.

Extension of the biodiesel tax incentive is a top priority for ASA. Biodiesel has provided a significant market opportunity for U.S. soybean farmers, as well as jobs and economic development for rural communities. As you know, biodiesel is one of the cleanest burning biofuels currently used in commercial markets. Biodiesel is a renewable and sustainable energy source that can play a significant role in our national efforts to increase our energy security and improve our environmental footprint. The biodiesel industry is creating valuable green jobs and making a positive contribution to the economy. In 2008 alone, the U.S. biodiesel industry supported over 51,000 jobs, added over $4 billion to the nation’s Gross Domestic Product (GDP) and generated over $866 million in tax revenue for federal, state and local governments.

The biodiesel tax incentive is currently set to expire on December 31, 2009 and production will cease if the tax incentive is not extended. A multiple year extension of the incentive is needed to provide certainty and stability in the marketplace. In addition, ASA supports reforming the biodiesel tax incentive by shifting the current blenders excise tax credit to a production excise tax credit. This reform will improve administration of the incentive, eliminate potential abuses and improve tax compliance.

Again, I urge you to cosponsor H.R. 4070 and actively seek extension of the biodiesel tax credit before it expires at the end of the year. Thank you for your consideration.