House Passes The American Jobs and Closing Tax Loopholes Act: Background
DTN Ag Policy Editor Chris Clayton reported on Friday (link requires subscription) that, “A jobs and tax-extenders bill that resuscitates the biodiesel tax credit passed the House of Representatives on Friday, but biodiesel producers will still go into June waiting for final action on the credit.
“The American Jobs and Closing Tax Loopholes Act has several provisions directly related to agriculture beyond biodiesel, including more than $1.5 billion in disaster aid, the settlement of a long-running USDA discrimination case and the extension of a subsidy for American cotton shirt manufacturers.
“The bill extends the $1 biodiesel and renewable fuel credit to the end of 2010, and makes it retroactive to the beginning of this year. The credit expired last December, and industry officials have said the loss of the credit has caused biodiesel plants to idle across the nation and has led to as many as 20,000 people losing their jobs. The tax credit is expected to cost about $624 million this year and another $231 million in 2011, according to Congress’ Joint Committee on Taxation.”