Tyson is defending the use of a biodiesel tax credit by the meat-producing giant and oil giant ConocoPhillips.
A recent IRS ruling that the two companies could take advantage of a $1-a-gallon tax credit brought criticism from the National Biodiesel Board (see my post on April 18th) and the threat of legislative action by a Congressman from Texas (see my May 24th post). Now, in an article on Cattle Network.com, Tyson says they, along with ConocoPhillips, should get to use the credit because it will help spur growth of alternative fuels, such as biodiesel:
“Our initiative is about increasing the supply of renewable fuels and contributing to U.S. energy security efforts,” Tyson spokesman Gary Mickelson told Meatingplace.com. “We believe our alliance qualifies for a federal production tax credit, which will be based on the number of gallons produced. It is not a jobs credit or an investment tax credit.
“It’s true the renewable diesel made from animal fat will be produced and distributed with existing refineries and fuel distribution systems,” Mickelson added. “However, ConocoPhillips has publicly stated it will spend $100 million in capital expenditures to enable it to produce the fuel. Tyson will also make capital improvements in order to begin pre-processing animal fat from some of its North American rendering facilities.”
Rep. Lloyd Doggett (D-Texas) has introduced a bill to repeal the IRS ruling and narrow the tax break’s scope to what Congress had originally intended.