Sandlin to propose biofuel development tax credit

PIERRE, S.D.

U.S. Rep. Stephanie Herseth Sandlin says she will propose a tax credit aimed at encouraging investment in development of the next generation of renewable fuels.

The South Dakota Democrat says additional biofuels will have to be produced to meet renewable fuel standards that have been set by Congress.

In a telephone press conference with reporters, Herseth Sandlin said the next generation of renewable fuels could be made from plant material such as corn cobs and wood. She says her bill would create a tax credit for those who invest in advanced biofuel technology.

Herseth Sandlin says the bill would have to include provisions to make sure tax credits did not increase the federal deficit.