Congressman Cleaver Sends Letter to Congressional Leaders in Support of the Biodiesel Tax Credit Extension
(Washington, D.C.) – Congressman Emanuel Cleaver, II joined over 45 House members in sending a letter to Speaker Paul Ryan, Majority Leader Kevin McCarthy, Democratic Leader Nancy Pelosi and Democratic Whip Steny Hoyer supporting an extension of the biodiesel tax credit this year.
The letter can be found here.
The Bipartisan Budget Act of 2018, which passed in February, retroactively extended the biodiesel tax incentive for 2017, but left it expired for 2018 and beyond. Biodiesel is a critical product for the State of Missouri. The biodiesel tax credit would allow producers of biodiesel to claim a tax credit of $1.00 per gallon. Biodiesel in the U.S. is usually derived from soybean oil and can be used in diesel engines without modification. Soybean growers, producers and suppliers provide thousands of family jobs, and on average, the biofuel industry creates over 6,600 jobs each year in Missouri. (See statistics here from the Missouri Dept. of Economic Development)
Congressman Cleaver is a strong supporter of the biodiesel tax incentive because the Fifth District is home to a primary biodiesel plant, The Paseo Cargill Energy, LLC in Kansas City, Missouri. Missouri is the home of the National Biodiesel Board. Family farms, land values and even local government tax rolls have increased in value as a result of the biodiesel industry.
Soybean prices have been decimated by the administration’s trade war with China. As a result, soybean prices have been falling since July of this year and will not likely recover in time for harvest. These low prices will leave many small farms in the red.
“A multi-year extension of the biodiesel tax incentive needs to be passed without delay. This is not the time to potentially handcuff our farmers from another viable market. We need to bring back some certainty when it comes to buying and selling grain from our foreign partners,” said Congressman Cleaver.
“It is incredibly difficult for farmers and biodiesel refiners to plan for the future with this current trade war."
Emanuel Cleaver, II is the U.S. Representative for Missouri’s Fifth Congressional District, which includes Kansas City, Independence, Lee’s Summit, Raytown, Grandview, Sugar Creek, Blue Springs, Grain Valley, Oak Grove, North Kansas City, Gladstone, Claycomo, and all of Ray, Lafayette, and Saline Counties. He is a member of the exclusive House Financial Services Committee, the Ranking Member of the Subcommittee on Housing and Insurance, and also a Senior Whip of the Democratic Caucus. For more information, please contact Heather Frierson at 816-842-4545 or Heather.Frierson@mail.house.gov A high-resolution photo of Congressman Cleaver is available here.