Corporate Tax Bill Talking Points
For Biodiesel
September 28, 2004

• The renewable fuels and transportation sectors have been working on bipartisan legislation known as the Volumetric Ethanol Excise Tax Credit (VEETC) originally introduced as S. 1548 sponsored by Senators Grassley (R-IA) and Blanche Lincoln (D-AR); and H.R. 3119 sponsored by Representative Kenny Hulshof (R-MO) which has been included in the legislation repealing the foreign sales corporation/extraterritorial income tax regime (FSC/ETI).

• I support the VEETC in FSC/ETI which creates a new incentive for Biodiesel which is a federal excise tax credit amounting to one penny per percent of biodiesel blended with petroleum diesel.   The Congress needs to move this legislation, and secure biodiesel and ethanol for our economy, our environment, our energy independence; and our American farmers. 

• Additionally, the VEETC as included in the Senate version creates a new incentive for biodiesel, ensure taxes on ethanol blended motor fuels will be credited to the Highway Trust Fund, extends the ethanol tax incentive through 2010, and hold harmless the small ethanol producer tax credit, the only tax incentive actually provided for ethanol producers.

• The legislation would maintain incentives for the production and use of American-made ethanol-blended fuels and eliminate the highway-funding penalty presently incurred by high ethanol-consuming states.

• Congress must work to complete VEETC, which will promote energy independence, cleaner air, a stronger domestic agricultural sector and safer highways. We are eager to assist you in every way possible to ensure enactment of these critically important reforms this year.