Iowa Ag Connection - Vilsack to Sign Biodiesel Tax Credit Bill

Iowa Ag News Headlines

Vilsack to Sign Biodiesel Tax Credit Bill
Iowa Ag Connection - 05/30/2006

On Tuesday, Governor Vilsack will sign into law HF 2754 and HF 2759, the renewable fuels and infrastructure bills. This event will take place on the West steps of the Iowa Statehouse.

HF 2754 contains many provisions which will increase the use of biodiesel in Iowa. Several of these provisions include: establishment of a three cent-per-gallon tax credit until 2012, a system for the delivery of infrastructure support for biodiesel point-of-sale infrastructure, which includes a seat on the Infrastructure Board for ISA and 50 percent cost-share assistance up to $50,000 per project for biodiesel-related projects from retail sites to terminal racks, and statutory recognition of the ASTM and EPA definitions of biodiesel.

HF 2759 includes provisions creating a $12 million infrastructure grant assistance program for biodiesel and E-85. The bill also provides support for increased state monitoring of fuel quality.

Farmers will benefit from the steady growth of demand for soybeans to fuel biodiesel production. As a result of this bill, Iowa soybean farmers can expect average farm-level prices to increase an average of 9.5 cents per bushel over the next five years for an increase of $61 million in soybean cash receipts.