Illinois Soybean Growers (ISG) applauds congressional approval of a tax package that includes a two-year extension of a biodiesel tax credit, a positive step for Illinois soybean farmers.
“Extending the biodiesel tax credit for the next two years provides much-needed stability for an industry that has great potential, particularly in Illinois – one of the top-producing soybean states in the country,” says Mike Levin, ISG director of issues management and analysis.
While this provision extends the biodiesel tax credit for two years, making it retroactive for 2015 and through 2016, it was kept as a blender’s credit instead of being reinstated as a producer’s credit. The producer’s credit would have more directly benefited the domestic biodiesel industry and Illinois soybean farmers.
“We are disappointed there won’t be the opportunity to further support domestic production through a producer’s credit,” says Levin. “But we are positive that a two-year extension will spark industry growth and create opportunity for our soybean growers.”
The bill also addresses modifications to Section 179 property expensing. The provision permanently extends the small-business expensing limitation and phase-out amounts in effect from 2010 to 2014, which are $500,000 and $2 million, respectively. The amounts are currently $25,000 and $200,000, respectively.
A five-year extension of bonus depreciation also is included for property acquired and in service during 2015 through 2019, with an additional year for certain property with a longer production period. The bonus depreciation percentage is 50 percent for property placed in service during 2015, 2016 and 2017 and phases down to 40 percent in 2018 and 30 percent in 2019.
Illinois Soybean Growers (ISG) is a membership organization serving more than 43,000 Illinois soybean growers. ISG provides advocacy in Springfield and Washington, D.C., to promote the interests of Illinois soybean farmers and programs that enhance soybean production and demand. Voice for Soy, the online action center supported by ISG, allows growers to easily connect with legislators and regulators to advocate for Illinois agriculture. For more information about ISG, visit the website www.ilsoygrowers.com.
For more information, contact:
Director of Issues Management Analysis