Biofuel tax credit set to expire - KTTC Rochester, Austin, Mason City News, Weather and Sports

By Katie Lange

Biofuel tax credit set to expire


GLENVILLE, Minn. (KTTC-DT) -- There is a change coming at the end of December, which could greatly affect Biofuel producers and consumers.

Five years ago a Biofuel tax credit was created. The goals: to lessen our dependence on foreign oil, create more renewable fuel infrastructures and more jobs. Now, the tax credit is set to expire. The expiration has some people questioning how it will affect Minnesota's homegrown energy.

The tax credit was created as a way to bring ethanol to our gas pumps. It was an incentive for thousands of farmers to invest in Ethanol plants, and they did. According to Senator Klobuchar, Minnesota's Ethanol production this year will exceed 1 billion gallons, employ nearly 8,400 people and create an economic impact greater than $3 billion dollars.  

POET Biorefining's spokesperson felt that the incentives can't be phased out just yet.

"Lets talk about the Soy Diesel industry. Over 35,000 jobs gone, because the tax incentive went away. So again, there is a pay-back to America," stated POET's GM, Rick Mummert.

The writing is on the wall. Located just next door to POET biorefining in Glenville, was SoyMor. A Soy Diesel plant that closed after 3-years, when the tax credit incentive expired.

Mummert told us his biggest frustration is that the Petroleum Industry has been subsidized for years, He feels homegrown energy should be given the same treatment.

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