Senate Finance approves tax extenders bill
April 03, 2014 | 08:51 PM
The Senate Finance Committee today approved the tax extenders bill, including several provisions important to agriculture.
The bill, entitled the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act, was approved by bipartisan voice vote.
Sen. Ron Wyden, D-Ore.
“By passing this bill, the Finance Committee has put an expiration date on the status quo,” Senate Finance Committee Chairman Ron Wyden, D-Ore., said.
“The stop-and-go nature of these tax extenders contributes to the lack of certainty and predictability America needs to create more family wage jobs. But it makes no sense to let these incentives disappear without a comprehensive reform proposal to replace them when jobs, innovation and research, and people’s homes are on the line.”
The National Biodiesel Board praised the inclusion of a $1 per gallon incentive for biodiesel that expired on December 31, and called on Congress to act quickly on tax legislation.
“This is the third time in five years that the biodiesel incentive has lapsed, making it incredibly difficult for biodiesel businesses to plan for expansion or build infrastructure,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board, the industry trade association.
The bill passed in committee Thursday would reinstate the biodiesel incentive retroactively to Jan. 1, 2014, and extend it through the end of 2015. The incentive also would cover renewable aviation fuel and renewable diesel, a similar diesel alternative.
The American Soybean Association said that both the biodiesel tax incentive and a reinstatement of the pre-2014 expensing amounts for farm infrastructure and equipment under Section 179 are important to its members.
“The proposal’s Section 179 reinstatement is also important,” ASA said. “This enables farmers and other small business owners to expense investments made in new technology, equipment and infrastructure in their operations. Given the land-based and capital-intensive nature of farming, not to mention the ever-advancing technology we need to farm sustainably and competitively, this program helps us to stay on the cutting edge of our industry.”
Novozymes praised the bill for including the second generation biofuel producer tax credit, special depreciation allowance for second generation biofuel plant property, biodiesel and renewable diesel fuels credit, and the alternative fuel and alternative fuel mixture excise tax credit, all of which expired at the end of 2013.
“This package extends them through 2015 adding certainty for the advanced biofuel industry and its investors," Novozymes said.
Sen. Charles Grassley, R-Iowa, claimed credit for the inclusion of expired wind energy tax provisions.
Grassley noted that the original package did not did include wind energy provisions, until he filed a bipartisan amendment to add the wind provision which Wyden accepted.
National Farmers Union President Roger Johnson praised the bill for including the tax credits for biodiesel, cellulosic biofuels and energy efficiency, but expressed disappointment that it omitted a production tax credit and investment tax credit for renewable energy.
“Our country lacks a comprehensive, national energy strategy that moves us toward energy independence and helps mitigate the effects of climate change,” Johnson said. “These tax credits are some of the only policies we have that support the development of renewable energy, particularly wind and solar. Failure to renew these provisions would be taking a giant step backward.”
Johnson also expressed disappointment that the bill continues what he called “tax loopholes for the largest corporations.”
“Given the widening income inequality gap and our national debt, we cannot afford this sort of tax break,” said Johnson. “Every dollar lost because of these loopholes is one less dollar available to invest in jobs, infrastructure, food for the hungry or to reduce the deficit.”
▪ Chairman’s Mark of the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act ▪ — Summary
The bill, entitled the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act, was approved by bipartisan voice vote.
Sen. Ron Wyden, D-Ore.
“By passing this bill, the Finance Committee has put an expiration date on the status quo,” Senate Finance Committee Chairman Ron Wyden, D-Ore., said.
“The stop-and-go nature of these tax extenders contributes to the lack of certainty and predictability America needs to create more family wage jobs. But it makes no sense to let these incentives disappear without a comprehensive reform proposal to replace them when jobs, innovation and research, and people’s homes are on the line.”
The National Biodiesel Board praised the inclusion of a $1 per gallon incentive for biodiesel that expired on December 31, and called on Congress to act quickly on tax legislation.
“This is the third time in five years that the biodiesel incentive has lapsed, making it incredibly difficult for biodiesel businesses to plan for expansion or build infrastructure,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board, the industry trade association.
The bill passed in committee Thursday would reinstate the biodiesel incentive retroactively to Jan. 1, 2014, and extend it through the end of 2015. The incentive also would cover renewable aviation fuel and renewable diesel, a similar diesel alternative.
The American Soybean Association said that both the biodiesel tax incentive and a reinstatement of the pre-2014 expensing amounts for farm infrastructure and equipment under Section 179 are important to its members.
“The proposal’s Section 179 reinstatement is also important,” ASA said. “This enables farmers and other small business owners to expense investments made in new technology, equipment and infrastructure in their operations. Given the land-based and capital-intensive nature of farming, not to mention the ever-advancing technology we need to farm sustainably and competitively, this program helps us to stay on the cutting edge of our industry.”
Novozymes praised the bill for including the second generation biofuel producer tax credit, special depreciation allowance for second generation biofuel plant property, biodiesel and renewable diesel fuels credit, and the alternative fuel and alternative fuel mixture excise tax credit, all of which expired at the end of 2013.
“This package extends them through 2015 adding certainty for the advanced biofuel industry and its investors," Novozymes said.
Sen. Charles Grassley, R-Iowa, claimed credit for the inclusion of expired wind energy tax provisions.
Grassley noted that the original package did not did include wind energy provisions, until he filed a bipartisan amendment to add the wind provision which Wyden accepted.
National Farmers Union President Roger Johnson praised the bill for including the tax credits for biodiesel, cellulosic biofuels and energy efficiency, but expressed disappointment that it omitted a production tax credit and investment tax credit for renewable energy.
“Our country lacks a comprehensive, national energy strategy that moves us toward energy independence and helps mitigate the effects of climate change,” Johnson said. “These tax credits are some of the only policies we have that support the development of renewable energy, particularly wind and solar. Failure to renew these provisions would be taking a giant step backward.”
Johnson also expressed disappointment that the bill continues what he called “tax loopholes for the largest corporations.”
“Given the widening income inequality gap and our national debt, we cannot afford this sort of tax break,” said Johnson. “Every dollar lost because of these loopholes is one less dollar available to invest in jobs, infrastructure, food for the hungry or to reduce the deficit.”
▪ Chairman’s Mark of the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act ▪ — Summary
