Letter To Nancy Pelosi And Steny Hoyer

Letter

Boswell, Loebsack, and Braley Urge Renewal of Biodiesel Tax Credit

Today, Congressmen Leonard Boswell, Dave Loebsack, and Bruce Braley joined together to insist that House leadership make the renewal of the biodiesel tax credit a priority in its second session to ensure that biodiesel remains competitive with conventional diesel fuel and continues to provide the critical economic, security, and environmental benefits associated with its domestic production and use.

In a letter to House Democratic Leadership, the Members urged quick passage of the biodiesel tax credit when the House returns next week to prevent devastating job losses in the industry, decreasing demand for soybeans and lower prices, and eventually, lost tax revenue for state and local governments for states like Iowa.

"With unemployment plaguing the nation, the biodiesel tax credit is an important tool to maintaining and creating jobs in states like Iowa that produce biodiesel and to help sustain an industry that plays a critical role in the economy, environment, and fuel supply," Boswell said. "Biodiesel plants in my district are already struggling during these difficult times. The responsible application of tax incentives can provide an important boost to local and state economies."

"We must take swift and direct action to help Iowa families that are struggling," said Loebsack. "These tax incentives will provide critical assistance that could create and save jobs while stabilizing an industry that is essential for Iowa's economy."

"These tax incentives are crucial to keep Iowa at the forefront of biodiesel production," Braley said. "As we continue to work our way out of the worst economic crisis since the Great Depression, we need to take responsible action to ensure that we can keep these good-paying, clean energy jobs right here in Iowa."

Last year, the U.S. biodiesel industry supported 51,893 jobs in all sectors of the economy. This added $4.287 billion to the nation's GDP and generated $866.2 million in tax revenue for federal, state and local governments. The 690 million gallons of biodiesel produced in 2009 displaced 38.1 million barrels of petroleum with a clean-burning, efficient fuel grown in the United States.

The House passed an extension of the biodiesel tax credit in 2009 in a larger tax extenders bill. The Senate has not yet taken action on the larger package. Congressman Loebsack was joined by Congressman Boswell and Congressman Braley on December 22, 2009 in sending a letter to Senate Leadership urging extension of the tax credit before the end of 2009.

Below is the text of the letter sent to Speaker of the House Nancy Pelosi and Majority Leader Steny Hoyer.

January 8, 2010

Dear Speaker Pelosi and Majority Leader Hoyer:

Last year, Congress did not extend a tax incentive that is critically important to the state of Iowa. The biodiesel tax credit ensures that biodiesel remains competitive with conventional diesel fuel.

Allowing this tax credit to lapse at the end of 2009 has undermined the economic, security, and environmental benefits associated with domestic production and use of biodiesel. As we speak, Iowa biodiesel plants are shutting down. This will lead not only to devastating job losses in the industry, but also decrease demand for soybeans and lower prices, resulting in lost tax revenue for our state and local governments. With unemployment nationwide at 10 percent, this tax credit will help sustain an industry that provides multiple benefits to the economy, the environment, and fuel supply.

Last year, the U.S. biodiesel industry supported 51,893 jobs in all sectors of the economy. This added $4.287 billion to the nation's GDP and generated $866.2 million in tax revenue for federal, state and local governments. The 690 million gallons of biodiesel produced in 2009 displaced 38.1 million barrels of petroleum with a clean-burning, efficient fuel grown in the United States.

We write to urge quick passage of the biodiesel tax credit as soon as the House begins the second session of the 111th Congress.

Thank you for your timely consideration of this request and your leadership to move the renewable fuel industry into the 21st century. Please feel free to contact our offices if we can provide additional information on the importance of the biodiesel tax credit.

Sincerely,

Leonard Boswell (IA-3)
Bruce Braley (IA-1)
Dave Loebsack (IA-2)

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