Contact: Joshua Morby 414.791.9120
BEST Biodiesel closes doors, blames lack of tax credit
CASHTON – This week, the BEST Biodiesel Plant in Cashton shut its doors and closed, one of the many biodiesel plants in the United States to have done so since the expiration of the $1-per-gallon federal tax credit for biodiesel production at the end of 2009.
“This is unfortunate news for the people of Cashton, the company’s employees, as well as the state of Wisconsin,” said Joshua Morby, Executive Director of the Wisconsin Bio Industry (WBIA). “The reason for this closure is simple: lack of action by Congress to extend a tax credit for biodiesel production. Unless Congress steps up to the plate and recognizes the economic impact the bio fuel industry has on Wisconsin, I’m fearful the ethanol industry isn’t far behind.”
US Representative Ron Kind (D-La Crosse), whose district includes the BEST biodiesel plant has acknowledged that the extension of the federal biodiesel tax credit would make it more feasible for the BEST plant to come back online and begin production and is working with members of the WBIA to come up with a solution to the tax credits for the ethanol industry set to expire at the end of the year.
The $1-per-gallon federal tax credit for biodiesel production expired on December 31, 2009. Earlier this summer, the House of Representatives did pass the “American Jobs and Closing Tax Loopholes Act” who retroactively extended the tax credit through December 31, 2010. The bill has yet to be considered in the US Senate.
The 45-cent-per-gallon credit for blending ethanol is set to expire on December 31 of this year. The WBIA is working with a variety of national trade groups such as the Renewable Fuels Association, the National Corn Growers Association and American Coalition for Ethanol to help preserve this credit.
“At this point we’re hopeful Congress will recognize the importance of our industry and vote to extend the credit,” said Morby. “With help from elected officials such as Ron Kind, this is achievable.”
The Wisconsin Bio Industry Alliance is a diverse group of businesses, environmental groups, and statewide and local organizations that have come together to build both public and legislative awareness of the Bio Industry in Wisconsin.
For more information about the Alliance, or to find out how to join, please visit our website: http://www.wisconsinbioindustry.com.
