DC, October 12, 2004 (ENS): The first biodiesel
tax incentive was approved by the U.S. Senate Monday,
to the applause of the American Soybean Association,
the National Biodiesel Board, soybean farmers and biodiesel
enthusiasts who run their cars on the vegetable based
The House passed the bill on Friday. Lawmakers passed
the incentive as part of H.R. 4520, legislation concerning
the Foreign Sales Corporation/Extraterritorial Income
Tax, also known as the American Jobs Creation Act of
American Soybean Association president Neal Bredehoeft,
a soybean farmer from Alma, Missouri, called the Senate
approval, "a defining moment for the future growth
of biodiesel in the United States."
Passage of the biodiesel tax incentive would not have
happened without the steadfast commitment of Senator
Chuck Grassley, an Iowa Republican, Senator Blanche
Lincoln, an Arkansas Democrat, Congressman Kenny Hulshof,
a Missouri Republican, and others, Bredehoeft said.
The biodiesel tax incentive, which is structured as
a federal excise tax credit, amounts to a penny per
percentage point of biodiesel blended with petroleum
diesel. Biodiesel, derived from soybeans or other field
crops, is often blended 20 percent to 80 percent with
petroleum diesel. In this form diesel engines can burn
the bio-fuel without modification.
Based on the USDA baseline estimates for future soybean
production, over a five year time period the biodiesel
tax provisions could add almost $1 billion directly
to the bottom line of U.S. farm income, Bredehoeft said.
The provisions "could increase U.S. gross output
by almost $7 billion," he predicted.
National Biodiesel Board Executive Director Joe Jobe
said, "All biodiesel consumers will benefit from
this legislation, including those in tax exempt markets,
like school districts.
The last step is for President George W. Bush to sign
the bill; he is expected to do so within 10 days.