03.13.13
House Ways and Means Committee members examining ideas to reform the tax code should look no farther than the negative impacts of the tax subsidies upending the US oleochemical industry, according to the American Cleaning Institute (ACI).
“We are not opposed to biofuels. We are opposed to misguided government subsidies that negatively affect the price and availability of animal fats, a key feedstock for the oleochemical industry,” said Douglas Troutman, ACI vice president and counsel, Government Affairs.“Energy tax credits, if used, should encourage the development and use of new raw materials that do not compete with established uses such as oleochemical production.”
ACI represents the producers of oleochemicals, such as fatty acids and alcohols made from seed oils and animal fats, historically used in soaps and detergents.
Members of the US House Ways and Means Committee are undertaking a review of the Tax Code.ACI hopes that the unintended consequences of energy tax incentives utilizing tallow as a feedstock will come up in their discussions.
“Since passage of the ‘American Jobs Creation Act of 2004,’ government policy has increasingly driven and subsidized the diversion of animal fats to biofuel production via tax credit supports,” said Troutman.
More info: www.cleaninginstitute.org