Grassley Tries Again to Extend Lapsed Biodiesel Tax Credit
WASHINGTON – Sen. Chuck Grassley of Iowa last night sought Senate approval of an extension of the biodiesel tax credit, which lapsed last December under the Democratic leaders in Congress. Grassley has tried at every opportunity to reinstate the tax credit, which he said likely would lead to the reinstatement of about 2,000 jobs in Iowa alone and thousands more across the country. There were biodiesel-related green jobs in 44 states at the end of 2009.
“These jobs have fallen victim to a tactic used by the Democratic leadership to hold this popular and noncontroversial tax provision hostage to out-of-control deficit spending by Washington,” Grassley said on the Senate floor. “So I am here again to try to put thousands of Americans back to work producing clean, renewable fuel.”
Democrats objected to Grassley’s request, leaving the tax credit lapsed until after Congress’ Memorial Day break at the earliest. “I'll continue to push to extend the biodiesel tax credit as soon as possible when the Senate is back in session, and I’ll keep trying until this tax credit is reinstated,” Grassley said.
In February, Grassley worked out a bipartisan compromise with Sen. Max Baucus, chairman of the tax policy-writing Finance Committee, where Grassley is ranking member, but the Democratic leaders overrode the Baucus-Grassley compromise in favor of partisan priorities.
The text of Grassley’s floor statement last night follows here.
Floor Statement of Senator Grassley
Extension of Biodiesel Tax Credit
May 27, 2010
As the majority struggles in an attempt to jam another massive deficit spending bill through Congress, biodiesel plants in Iowa and throughout the country continue to lay off workers because the Democratically-controlled Congress has not extended the biodiesel tax credit. This is a simple and non-controversial tax extension that will likely reinstate more than 20,000 jobs nationwide, and about 2,000 jobs in Iowa alone.
These jobs have fallen victim to a tactic used by the Democratic leadership to hold this popular and noncontroversial tax provision hostage to out-of-control deficit spending by Washington. This past February, I worked out a bipartisan compromise with Chairman Baucus to extend the expired tax provisions, including the biodiesel tax credit. However, the Senate Democratic Leadership decided to put partisanship ahead of job security for thousands of workers, and that compromise did not move ahead.
So I am here again to try to put thousands of Americans back to work producing clean, renewable fuel. Therefore, I ask unanimous consent to call up H.R. 4853, that my substitute, which contains a one-year extension of the biodiesel and renewable diesel tax credits for all of 2010, be agreed to and the bill as amended be read a third time and passed.
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