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The Missouri Soybean Association Praises Bill to Close Tax Loophole in U.S. Energy Policy FOR IMMEDIATE RELEASE: May 17, 2007 WASHINGTON, D.C. – The Missouri Soybean Association (MSA) praised
Rep. Kenny Hulshof (R-MO) for cosponsoring bipartisan legislation introduced
today to prevent large integrated oil companies from exploiting a federal
tax incentive designed to stimulate biodiesel and renewable diesel production. In April, the Internal Revenue Service (IRS) approved a request to expand the definition of “renewable diesel” in the Energy Policy Act of 2005 to include the act of adding biomass to conventional refinery processes. “The recent IRS ruling could lead to unintended recipients taking advantage of the Renewable Diesel credit,” said Hulshof. “This bill fixes that problem. We should take every available step to encourage the use of renewable, homegrown fuels like biodiesel. This bill is designed to protect and encourage that potential.” Dale R. Ludwig, executive director/CEO of the MSA, noted that Congress recognized the need to reduce dependence on foreign oil when it enacted the biodiesel and renewable diesel tax incentives. As a result, the country now has a domestic biodiesel industry with 105 small biodiesel plants capable of producing 864 million gallons of fuel. “This bill takes steps to prevent some of the richest companies in the world from abusing the system and collecting our hard-earned tax dollars,” said Ludwig. “Kenny Hulshof has proven himself to be a long-standing advocate of the biodiesel industry and soybean farmers. We appreciate his continued support.” “This is a question about what makes sound energy policy: do you take limited taxpayer dollars and invest them in new energy companies and technologies built from the ground up, or do you take those same dollars and give them to already large, mature, highly profitable oil companies,” said Joe Jobe, CEO of the National Biodiesel Board. “It is very encouraging to see Rep. Doggett, Rep. Hulshof and so many others recognize the flawed policy that has resulted here, and try to correct it,” he said. “Economic analysis shows that biodiesel production will create at least 40,000 new jobs and will add $24 billion to the U.S. economy,” said Ludwig. “However, subsidizing the existing operations of oil refineries does not return these benefits, and in fact, could endanger beneficial biodiesel and renewable diesel producers by artificially inflating feedstock costs.” The MSA is a statewide membership organization providing a collective voice in representing interests specific to the Missouri soybean producer through legislative advocacy, influencing public policy and communication/education to and for its members in order to increase profitability for Missouri soybean farmers. ###
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© Missouri Soybean Programs |