Midwest lawmakers are joining together to renew a tax credit aimed at helping struggling farmers and AG workers.
They’re asking for a 2-year extension on the biofuel tax credit that gives producers a $1 per gallon tax credit. It expired more than 15 months ago.
It’s been a rough financial year for U.S. agriculture. Thanks to a tumultuous trade war with China, falling crop prices and a series of natural disasters.
Now farmers and manufacturers say they could face more money trouble if congress doesn’t renew the biofuel tax credit.
“For 15 months they’ve been selling at break even or a loss,” said Kurt Kovark of the National Biodiesal Board.
For more than a year, Congress hasn’t renewed the program that gives biofuel producers a dollar tax credit for every gallon of fuel they produce.
“The longer they have to carry that burden, the longer they don’t get credit when they can’t get credit to continue operations. That follows with layoffs and plant closures,” said Kovark.
Kovark calls the matter urgent for everyone. He says the subsidy keeps fuel prices down for truckers and reduces carbon air pollution on the road.
“From our perspective, there’s no reason the entire country shouldn’t be on board,” said Kovark.
Midwest lawmakers are pushing a plan to extend the credit 2 more years.
Since 2005 the program has passed with bipartisan support. But this time around it’s facing push back from the White House.
“Americans can’t afford policies like this,” said Katie Tubb.
Like the administration, Katie Tubb of the Heritage Foundation says all energy subsidies need to go, “If we want to get on a sustainable path we need to take a look at all these tax policies.”
Right now, the plan has support from both parties and was just introduced in the house.