Congress passes biodiesel tax credit extension
The Illinois Soybean Association (ISA) applauds Congress for passing the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Congress passed the act on Dec. 17.
The measure includes a two-year extension of all Bush-era tax cuts, a 13-month extension of unemployment insurance benefits, one-year cut in the payroll tax and the retro-active extension of the biodiesel tax exemption until 2011.
“We are pleased to see Congressional support for both the biodiesel tax extension and the estate tax, especially before the year ends,” said ISA Chairman Ron Moore, a Roseville, farmer. “It was vital to our industry and our farmers to get these issues resolved. We thank our senators and representatives for their support.”
The Senate voted overwhelming (81 to 19) for the $858 billion tax cut measure, sending it to the House. Thursday, the House followed with a 277 to 148 vote to approve the bill.
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. The incentive makes biodiesel more competitive with petroleum diesel, and lowers the cost of biodiesel to the end consumer.
The measure also includes a $5 million personal estate tax exemption, with the balance being taxed at 35 percent. If Congress had not acted, a 55 percent tax would have been imposed on farm estates worth $1 million or more come Jan. 1, 2011.
ISA is the statewide organization for Illinois soybean farmers. The farmers on its board administer legislative and membership programs and also administer soybean checkoff funds to support research, market development, promotions and educational programs designed to increase demand for Illinois soybeans. Contact ISA at 309-663-7692, or visit