Schumer: Senate Passed Bill Containing Tax Incentive Vital to the Future of NY Biodiesel Industry; Will Boost Jobs, Economic Growth

Press Release

Today, U.S. Senator Charles E. Schumer announced that the recently passed Senate jobs bill contains an extension of a tax incentive that is vital to the future of New York's emerging biodiesel industry. While traveling the state, Schumer has said that with the proper tax incentives in place biodiesel could become a huge industry in New York, employing thousands of people. Across the country there are currently 23,000 biodiesel related jobs and with the Senate's recent extension of the biodiesel tax credit, New York is well positioned to capture a significant portion of future growth. Just last month, Schumer visited Northern Biodiesel in Wayne County, the state's only fully functioning biodiesel facility, to promote the biodiesel tax credit and publicly urge his colleagues in the Senate to get behind the tax incentive.

"This tax incentive has two great purposes: it works to create jobs and to wean our country off foreign oil," said Schumer. "Upstate New York can become one of the nation's leaders in new energy production and extending this tax credit is an important part of making that a reality. Additionally, we are more dependent on foreign oil today than the days after 9-11. This is unacceptable and we must do better. We need to stop sending money overseas and start investing more in American jobs. The biodiesel tax credit is a giant step in the direction of reaching energy independence."

The biodiesel tax credit was first passed and introduced into the U.S. tax code in 2004. The credit has worked to spur growth in a domestic manufacturing industry that already employs 23,000 people worldwide. Since 2004, the biodiesel tax credit has been renewed with bipartisan support. Extending the tax credit will cost the federal government $13 billion but will produce many more dollars in terms of jobs and economic activity. The result of the tax credit extension will be a net gain for the American taxpayer.

Biodiesel is a clean burning alternative fuel that can be produced from domestic renewable resources and does not contain petroleum. The fuel is made when vegetable oil or animal fat is combined with ethanol or methane. The product of the mixture produces biodiesel which is a nontoxic fuel that can easily be used as a heating oil alternative among other uses. This clean fuel is also extremely efficient. For example, combining 100lb. of the initial mixture yields approximately 100lbs. of fuel so that there is very little waste. Unlike other alternative energies, biodiesel is very resilient during the cold weather so that, for example, when consumers heat their homes with biodiesel they receive the same quality of heat as they would if they used a petroleum-based fuel. Beyond being good for the environment, the use of biodiesel provides a shot in the arm to job growth. The industry directly creates manufacturing jobs and indirectly creates jobs in other fields that work to support the biodiesel manufacturing industry. Additionally, the use of biodiesel as a fuel vastly expands the market for agricultural products and this fact will be especially useful to New York's substantial agriculture community. The extension of the biodiesel tax credit will allow U.S. producers of this alternative, clean energy to sell it at cheaper prices then their foreign counterparts, thus reducing our country's massive trade deficit. The use of biodiesels also works to reduce U.S. dependence on foreign oil and thus bolters American's energy security.

Schumer added, "The extension of this tax credit is a win for everyone involved. These new businesses will grow, middle class families will find work and we'll begin to stop importing so much oil from overseas. I'm glad that Democrats and Republicans came together to pass this important tax incentive."

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