Last week, the Illinois General Assembly passed a tax package that extends the biodiesel tax credit for five years, until 2018. The tax credit was previously due to expire at the end of 2013. The Illinois Soybean Association led support for the action, which includes other tax relief.
"This is great news for Illinois soybean farmers and the biodiesel industry," says Matt Hughes, soybean farmer from Shirley and ISA chairman. "We are very pleased to see Illinois legislators' support for biodiesel. The extension will help maintain Illinois as the nation's leading biodiesel producer. The state tax credit is truly vital to our industry and our farmers. We also will continue to push for continuation of the federal biodiesel tax incentive."
In addition to biodiesel and ethanol tax credit extensions, the package increases the Illinois estate tax individual deduction level from $2 million to $3 million in 2012 and to $4 million in 2013 and thereafter. It also provides $85 million in tax relief for the Chicago Mercantile Exchange and $15 million for Sears in an attempt to keep these businesses from leaving Illinois and has research and development credit extensions and other business tax credits.
ISA joined the Illinois Chamber of Commerce, Illinois Farm Bureau, Illinois Manufacturers Association, Tax Payers Federation, Illinois Corn Growers Association and other business groups in support.
The National Biodiesel Board (NBB) recently announced that the latest U.S. Environmental Protection Agency (EPA) figures confirm the U.S. biodiesel industry set a new record for annual production. NBB CEO Joe Jobe says that proves the power that strong domestic energy policy has in creating U.S. jobs and boosting the economy.
Between 2004 and 2010, CardnoENTRIX, a Houston-based environmental and natural resources consulting company, estimates that the biodiesel industry accounted for nearly $2.7 billion of Illinois gross domestic product and supported nearly8,000 jobs in the state.
Since 2003, the year the Illinois sales tax emption for biodiesel went into effect, annual biodiesel production capacity in the state has increased from 20 million gallons to a record 188 million gallons in 2010. Production in 2011 will surpass the 2010 record.