Axne Urges Year-End Action on Tax Provisions

Rep. Axne letter to leadership outlines important tax provisions that Congress must address before year end

December 4, 2019

WASHINGTON, D.C. — Today, Rep. Cindy Axne (IA-03) sent a letter to Speaker Pelosi, Leader Hoyer, and Ways & Means Chairman Neal urging action on critical tax policies that are important to Iowans before year end. Axne called on leadership to address the biodiesel tax credit, wind and solar investment tax credits, and the upcoming Health Insurance Tax (HIT) that is set to go into effect in January.

“We must renew the biodiesel tax credit, extend important renewable energy and energy efficiency tax credits, and eliminate the health insurance tax that is set to go into effect,” Rep. Axne wrote. “Many of these issues have been before Congress for far too long and we cannot afford to delay any longer.”

Rep. Axne has been a vocal champion of the biodiesel tax credit, helping introduce the Biodiesel Tax Credit Extension Act and leading legislation to make the second generation biodiesel tax credit permanent.

“The biodiesel tax credit expired nearly two years ago, leaving the industry and entire supply chain with significant uncertainty that has drained working capital and has hindered future development and investment,” Rep. Axne wrote. “At a time when farmers across the state are facing hardship, Congress cannot delay any more on renewing this important tax credit that will restore demand for Iowa farmers, create jobs, and set us on a path towards a cleaner environmental future.”

Rep. Axne has also heard from many constituents over concerns on the upcoming health insurance tax (HIT) that is scheduled to go into effect on January 1, 2020 and could impact as many as 142 million Americans.

“Without delaying this tax, hardworking Iowa families could see higher health care costs,” said Rep. Axne. “Repealing this tax ensures Iowa seniors and working families aren't paying the price for Washington dysfunction. I will continue to work with Democrats and Republicans in order to find bipartisan solutions to lower the cost of care.”

With only 11 legislative days left on the calendar, Congress cannot afford to delay any longer in addressing these important tax provisions.

Read the text the letter below:

Speaker Pelosi, Leader Hoyer, and Chairman Neal,

As the end of the year approaches, I write to express urgency in addressing tax policies that are important to my constituents before the first session of the 116th Congress adjourns. We must renew the biodiesel tax credit, extend important renewable energy and energy efficiency tax credits, and eliminate the health insurance tax that is set to go into effect. Many of these issues have been before Congress for far too long and we cannot afford to delay any longer.

The biodiesel tax credit expired nearly two years ago, leaving the industry and entire supply chain with significant uncertainty that has drained working capital and has hindered future development and investment. Many biodiesel plants, including those in my home state, have closed or reduced hours, resulting in lost jobs for Iowans and decreased demand for Iowa soybean farmers. At a time when farmers across the state are facing hardship, Congress cannot delay any more on renewing this important tax credit that will restore demand for Iowa farmers, create jobs, and set us on a path towards a cleaner environmental future.

Congress must also extend additional clean energy tax credits, such as the Investment Tax Credit (ITC) and energy efficiency incentives. The ITC has been instrumental in spurring innovation, investment, and jobs for clean energy industries such as solar and distributed wind and is set to phase out at the end of 2019. Energy efficiency incentives, such as 179D, 25C, and 45L, have driven energy efficiency improvements in buildings and lapsed in 2017. These tax credits have demonstrated success in encouraging energy efficient construction.

The Health Insurance Tax is scheduled to go into effect on January 1st and could impact as many as 142 million Americans that use marketplace health insurance. This tax was meant for health insurance companies, but we know that hard working Americans would end up paying the price. A 2018 analysis by Oliver Wyman Actuarial Consulting showed this would ultimately be a cost passed down, increasing insurance premiums by more than 2 percent. I am requesting we delay this tax until a solution that doesn't raise premiums for hard working families is found. This is an important tax policy issue that will impact families in Iowa who should never pay the price for Congressional inaction.

There are many important issues that Congress must address before the year is over, such as finalizing the United States Mexico Canada Agreement (USMCA), lowering the cost of prescription drugs, and funding for our military. However, Congress cannot delay any longer on addressing these important tax policies that have bipartisan support and will immediately ensure certainty for Iowa farmers and biodiesel producers, reduce greenhouse gas emissions, and lower health insurance premiums for Iowa families.