Weber Statement on Tax Credit Legislation
Washington, D.C. – Representative Randy Weber (R – Friendswood) introduced H.R. 1866, the Animal Fat Tax Act of 2017. Similar legislation was introduced last Congress. Representative Weber’s statement is as follows:
“U.S. cleaning manufacturers rely on animal fat byproducts as an ingredient in many personal care products we use every day. Unfortunately, the costs for these raw materials have increased 116 percent over the last decade because of federal intervention in the free-market. Biodiesel tax credits, introduced in 2006, have been picking winner and losers – placing American manufacturers at a tremendous market disadvantage.
The biodiesel tax credit was allowed to expire at the end of the 2016. However, with this credit lapsing four times since 2010, U.S. manufacturers need more certainty that the domestic market for animal fats will not be distorted if the credits are extended this year. As a byproduct of the livestock industry, this important ingredient in soaps and detergents is inelastic – we cannot raise more animals to meet the growing demand created by the renewable fuel industry. The only viable alternative is palm oil produced abroad. Without a long-term fix, we risk sending production and American jobs overseas.
My legislation provides this solution by simply disallowing tax credits for fuels derived from animal fats. As we discuss tax reform in the 115th Congress, H.R. 1866 will be an important factor to correct the unintended artificial market manipulation while we work to clean up the tax code.”