http://www.biodiesel.org/news/taxcredit/default.shtm

Senate Majority Leader Opts for Pared-Down Jobs Package;
Removes Tax Extenders/Biodiesel Tax Incentive

NBB Members Are Urged to Immediately Contact Senators and
Call for Inclusion of Biodiesel Tax in First Legislative Vehicle.

Consistent with multiple press reports over the past several weeks, Senator Max Baucus (D-MT), Chairman of the Senate Finance Committee, and Senator Charles Grassley (R-IA), the Finance Committee’s Ranking Member, had been working on a bipartisan Jobs package. On Thursday, February 11, 2010, Senators Baucus and Grassley unveiled the Hiring Incentives to Restore Employment (HIRE) Act. Among its provisions, this legislation provided for a one year extension of the biodiesel tax incentive. Below you will find links to the bipartisan press release issued by the Senate Finance Committee and a link to the legislative text of the HIRE Act.

Press Release
http://finance.senate.gov/press/Bpress/2010press/prb021110a.pdf

Text of HIRE Act
http://finance.senate.gov/sitepages/leg/LEG%202010/021010%20HIREACT%20draft.pdf

Subsequent to the Senate Finance Committee’s unveiling of their package, Senate Majority Leader Harry Reid (D-NV), affirmatively decided to jettison major components of the HIRE Act and will attempt to move forward the week on February 22, 2010 with a scaled back Jobs package that currently does not include an extension of the biodiesel tax incentive.

Senator Reid was quoted as saying after the Thursday Democratic Caucus meeting "No one can dispute we have a jobs bill," he added. "We're not going to confuse this with tax extenders." Senator Reid has signaled an intention to address other items, such as tax extenders, in subsequent legislation, but provided no concrete plan on how or when this would happen.
NBB distributed a strong response urging the Senate to include the tax incentive in the first possible vehicle.

The affirmative decision to remove tax extenders – which includes the biodiesel tax incentive – is clearly an unwelcome development. Further delay will cause even more harm for the U.S. biodiesel industry. It is imperative that that all NBB members and biodiesel stakeholders contact their Senators immediately with the following message:

Delaying consideration of the biodiesel tax incentive is unacceptable. The longer the credit lapses, the more jobs will be lost. Retroactive extension of the biodiesel tax incentive must be addressed immediately and be included in the first legislative vehicle moving in the Senate that is going to get signed into law.

Thank you for your help. NBB’s Washington, DC Office will continue to closely monitor this issue and provide updates as warranted.

Michael C. Frohlich
National Biodiesel Board