Dear ASA Members & Supporters:

Despite the full court press employed by ASA, state soybean associations, and the biodiesel industry, and individuals like you, it appears that the biodiesel tax credit will not be extended before December 31. The U.S. Senate continues to work toward completion of their health care reform bill, but all indications are that there will be no other vehicles on which the biodiesel tax credit might be considered. While legislation to extend the biodiesel tax incentive and other expiring tax provisions passed the House of Representatives, the Senate's singular focus on health care legislation prevented action on a tax extenders package.

While the lapse in the tax credit will deal a severe blow to the U.S. biodiesel industry, ASA will continue to work to reinstate the credit retroactively in 2010. We are encouraged by a letter that Senate Finance Committee Chairman Max Baucus and Ranking Member Chuck Grassley sent to Senate leadership yesterday informing them that the Finance Committee will take action early in the new year to extend retroactively the biodiesel tax incentive and other expiring tax provisions. ASA, state soybean associations, and the biodiesel industry will press for quick action to extend the biodiesel tax incentive when Congress returns. The sooner that Congress returns and enacts the tax credit, the better chance that biodiesel producers will have to return to operation.

ASA urges you to continue pressing your Senators for quick action to extend the biodiesel tax incentive as soon as Congress returns in the new year.