Jon Kyl: “this amendment very simply changes an IRS interpretation of the 2005 Energy bill that provides a $1-per-gallon tax…”

“this amendment very simply changes an IRS interpretation of the 2005 Energy bill that provides a $1-per-gallon tax credit for creation of biodiesel. An interpretation by IRS said that if you take animal fat and add it to the biodiesel--or add it to diesel, you have biodiesel and then get the $1-per-gallon credit. That was not what was intended when this was created. What has happened is all of the animal fat used to do this was already being used by the oleo chemical industry. Folks, for example, who make soap and detergents and the like, are finding the cost of the animal fat, their feed stock, has skyrocketed 100 percent this past year because of the way this has been done. As a result, we are simply changing the interpretation IRS put on it that big oil companies can take advantage of what was not intended to be a tax credit for them, people who are already refining diesel fuel. But rather, those who would create legitimate new diesel fuel from legitimate biomass, the credit remains; nothing changes for that. It simply means the oil companies taking advantage of the credit in an improper way would no longer be able to do so.”