facebook linkedin twitter

Congress Considers Reviving Tax Breaks Prized by ADM, Tesla, GM

December 16, 2019by Laura Davison and Erik Wasson
Sen. Charles Grassley (R-Iowa) speaks at the U.S. Capitol in Washington D.C. on September 27, 2018. (Tom Williams/Pool/Sipa USA/TNS)

WASHINGTON — U.S. lawmakers led by Senate Finance Committee Chairman Charles Grassley are negotiating a potential revival of expired tax breaks in last-minute negotiations over a government spending bill.

The talks, which were held on Saturday, are focused on reinstating the so-called tax extenders, a move that could be a boon to the biofuel, alcoholic beverage and short-line railroad industries that were hoping to see renewal of valuable credits and deductions, according to a person familiar with the discussions.

“Chairman Grassley has been leading bicameral negotiations on tax extenders and is working to make sure they are included in the year-end appropriations package,” Michael Zona, a spokesman for Grassley, R-Iowa, said Saturday in an email. “Dropping tax extenders like biodiesel would be a major setback and may push more plants that employ thousands of Americans toward bankruptcy.”

The negotiations are taking place as the House and Senate seek to strike a deal that would fund the government before the current stopgap package expires on Friday. The tax breaks lapsed at the end of 2017. Since then, businesses have been expecting Congress to retroactively extend the benefits as lawmakers have repeatedly done in years past. So far, no relief has materialized.

The talks present a particularly acute boost to the biodiesel sector — including Archer-Daniels-Midland Co. and Renewable Energy Group Inc. — which is advocating for a retroactive extension of a $1 per gallon tax credit for biodiesel. Several plants have begun slashing production and laying off workers as a result of the two-year lapse of the tax credit. It also could also buoy tax breaks for those thinking of buying electric cars from General Motors Co. and Tesla Inc., which had been lobbying for an extension of a lucrative consumer tax credit for electric vehicle purchases. The $7,500 credit is still in effect, but Congress has capped the number of credits at 200,000 for each manufacturer. GM and Tesla have already reached the threshold.

Beer, wine and spirits producers could also see their two-year tax break revived. The 2017 tax overhaul temporarily lowered the excise tax for brewers, wine makers and distillers. The provision, which has strong bipartisan support, is credited with helping the craft beverage industry expand. Others hoping to use the year-end spending bill as a vehicle for their tax credit includes the solar industry, which is preparing to see its 30% investment tax credit start decreasing next year.

———

Kaustuv Basu contributed to this report.

———

©2019 Bloomberg News

Visit Bloomberg News at www.bloomberg.com

Distributed by Tribune Content Agency, LLC.

In The News

September 26, 2021
by Dan McCue
'A Time of Intensity' Ahead, As Budget Committee Advances Spending Bill

WASHINGTON - The House Budget Committee voted 20-17 on Saturday in favor of the $3.5 trillion budget reconciliation bill, effectively... Read More

WASHINGTON - The House Budget Committee voted 20-17 on Saturday in favor of the $3.5 trillion budget reconciliation bill, effectively setting up a vote in the full House on the sweeping package in a matter of days. One Democrat, Rep. Scott Peters, of California, joined all... Read More

September 26, 2021
by Dan McCue
In Ohio, Redistricting is Becoming a Much Litigated Event

COLUMBUS, Ohio -- The lawsuits keep coming over the ongoing redistricting effort in Ohio, where critics, in multiple court filings,... Read More

COLUMBUS, Ohio -- The lawsuits keep coming over the ongoing redistricting effort in Ohio, where critics, in multiple court filings, claim Republicans are openly disregarding the rules established by public referendum six years ago. The latest lawsuit over the newly drawn legislative district map was filed... Read More

September 24, 2021
by Dan McCue
Looming Strikes Threaten to Shut Down Most US Film and Television Production

LOS ANGELES, Calif. - It could be the biggest labor action in Hollywood since a Writers Guild of America strike... Read More

LOS ANGELES, Calif. - It could be the biggest labor action in Hollywood since a Writers Guild of America strike crippled the entertainment industry for some 14 weeks in late 2007 and early 2008. Beginning next week, members of the International Association of Theatrical Stage Employees... Read More

September 24, 2021
by Tom Ramstack
CDC Director Overrides Vote to Broaden Eligibility for Vaccines

ATLANTA, Ga.-- Dr. Rochelle Walensky made an unusual break Friday from a U.S. Centers for Disease Control and Prevention advisory... Read More

ATLANTA, Ga.-- Dr. Rochelle Walensky made an unusual break Friday from a U.S. Centers for Disease Control and Prevention advisory panel by overruling its guidance on booster doses for the Pfizer/BioNTech's COVID-19 vaccine. The Advisory Committee on Immunization Practices approved the boosters Thursday for anyone 65... Read More

September 24, 2021
by Dan McCue
San Francisco Airport Nation’s First to Mandate COVID Vaccines for All Workers

SAN FRANCISCO, Calif. -- Starting this week, everyone employed at San Francisco International Airport must be fully vaccinated against COVID-19... Read More

SAN FRANCISCO, Calif. -- Starting this week, everyone employed at San Francisco International Airport must be fully vaccinated against COVID-19 to report to work, according  to a joint statement from the airport and Mayor London Breed. The airport is the first in the country to adopt... Read More

September 24, 2021
by Dan McCue
House Votes to Guarantee Woman’s Right to an Abortion

WASHINGTON -- With wrangling over a $3.5 trillion spending plan seeming to tie the House in knots in recent days,... Read More

WASHINGTON -- With wrangling over a $3.5 trillion spending plan seeming to tie the House in knots in recent days, Democrats pivoted Friday to take on a Texas law that threatens to unravel protections afforded women by the Supreme Court's 1973 Roe v. Wade decision. Early... Read More

News From The Well
scroll top