WASHINGTON – Sen. Chuck Grassley (R-Iowa) today
called on President Biden and Secretary of Agriculture Tom Vilsack to support
the nation’s biofuels community and family farms. In two letters, Grassley urged
to uphold his commitment to supporting the biofuels industry and sought
information from Vilsack
regarding Biden’s proposed changes in capital
gains tax rates and the modification to stepped-up basis and how they will
ultimately affect America’s family farms.
Grassley along with Sen. Joni Ernst
(R-Iowa) and Reps. Randy Feenstra (R-Iowa), Ashley Hinson (R-Iowa) and Mariannette
Miller-Meeks (R-Iowa) sent a letter
to Biden urging him to uphold his promise to support biofuels. Biden previously
pledged to “promote and advance renewable energy, ethanol, and other biofuels
to help rural America.” However, the administration’s proposed infrastructure
bill would spend $174 billion to subsidize electric vehicles while hardly
mentioning the biofuel industry.
The Iowa members also urged President
Biden to recognize the ability for biofuels to be a permanent clean energy
solution as developments in farming practices and in carbon capture technology
are moving biofuels closer to becoming net carbon negative.
“Biofuels provide an immediate solution to
help decarbonize our transportation sector while supporting rural America and
providing a low carbon, cost effective choice to consumers,” the members
wrote. “Biofuels should not be treated as a transition fuel, but
prioritized as a fuel of the future.”
In the letter
to Vilsack, Grassley and his colleagues called on the U.S. Department of
Agriculture to make public a detailed explanation and any supporting economic
analyses that clarify how the Biden administration’s proposed tax increases
will affect farm estates. Specifically, the senators requested an analysis of Biden’s
proposed changes in capital gains tax rates and the modification to stepped-up basis
on America’s family farms.
“The proposed tax impacts are dependent on
a number of factors, including but not limited to appreciation in farmland
assets prior to a property owner's death, size of the farm operation and
associated assets, income of the heirs, and the farm's ownership structure.
Given these factors, we are writing to seek a detailed explanation and
supporting economic analysis clarifying how these tax provisions will affect
farm estates…” the senators wrote.
Full text of the letter to President Biden
can be found HERE
Full text of the letter to Secretary
Vilsack can be found HERE