Senate passes biodiesel tax incentive bill
The U.S. Senate on Wednesday passed the 2010 American Workers, State, and Business Relief Act (H.R. 4213), which includes legislation providing for a one-year retroactive extension of the biodiesel tax incentive.
Expiration of the tax incentive on Dec. 31 has essentially caused the production and use of biodiesel in the United States to cease.
Structured as a federal excise tax credit, the biodiesel tax incentive amounts to a penny per percentage point of biodiesel blended with petroleum diesel. The incentive makes biodiesel more competitive with petroleum diesel, and lowers the cost of biodiesel to the end consumer.
Biodiesel proponents praised the Senate's action. 'Biodiesel is a homegrown renewable fuel and an excellent way for America's soybean growers to boost U.S. energy security, promote economic development and improve the environment,' said Rob Joslin, president of the American Soybean Association, in a statement.
With the passage of H.R. 4213, the House and Senate must reconcile differences between versions of the bill approved by the respective chambers.
Industry groups urge Congress to enact the retroactive extension of the biodiesel tax credit as soon as possible.
'Quick action will allow the nation to again reap the substantial benefits associated with a healthy domestic biodiesel industry,' said Manning Feraci, vice president of federal affairs for the National Biodiesel Board, a trade association representing the biodiesel industry.