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House passes biodiesel tax credit as part of tax extenders package

May 28, 2010

A year extension of the $1 per gallon biodiesel tax credit is a step closer to reality.

The U.S. House today voted 215-204 in support of H.R. 4213, the American Workers, State, and Business Relief Act of 2010.  

Illinois members who voted for the bill were Jerry Costello, Danny Davis, Bill Foster, Luis Gutierrez, Debbie Halvorson, Phil Hare, Jesse Jackson, Jr., Dan Lipinski, Mike Quigley, Bobby Rush, and Jan Schakowsky.

Here are the provisions that impact production agriculture:

Extension of tax incentives for biodiesel and renewable diesel. The bill would extend for one year (through 2010) the $1.00 per gallon blenders tax credit for biodiesel and the small agri-biodiesel producer credit of 10 cents per gallon. The bill would also extend for one year (through 2010) the $1.00 per gallon production tax credit for diesel fuel created from biomass.

Extension of enhanced charitable deduction for contributions of food. The bill would extend for one year (through 2010) the provision allowing businesses to claim an enhanced deduction for the contribution of food inventory.

Extension of five-year depreciation for farming business machinery and equipment. The bill would extend for one year (through 2010) the provision that provides a five-year recovery period for certain machinery and equipment which is used in a farming business.

Extension of provision encouraging contributions conservation easements. The bill would extend for one year (through 2010) the increased contribution limits and carryforward period for contributions of easements for conservation purposes.

The Senate is expected to take up the extenders bill when it returns June 7 from Memorial Day recess.   

Earlier in the week, Illinois members expressed opposition to a change in the  federal highway funding formula inserted in the bill that would have cost the State of Illinois $119 million in road funds.

House and Senate negotiators restored the funding for Illinois and 12 other states prior to the House vote.

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