Senate Expected to Pass Biodiesel Tax Credit Bill

Senate Democrats expect to pass an unemployment benefits bill soon that includes a provision retroactively reinstating a biodiesel tax credit through the end of the year, according to a spokeswoman for Sen. Harry Reid (D-Nev.).

The legislation passed the House but was blocked in the Senate by Sen. Jim Bunning (R-Ky.).

The $1 per gallon tax credit will allow biodiesel producers nationwide to resume production that has been halted since the end of 2009, said a spokesman for the National Biodiesel Board.

Because the $1 a gallon biodiesel blending tax credit is needed to keep the alternative fuel competitive with the price of traditional diesel fuels, biodiesel producers have been drastically cutting back on their budgets, number of employees, and hours of operation.

“The industry is nearly paralyzed at the moment,” said Michael Frohlich, a board spokesman. “The bill is really critical to the survival of the industry. Any further delay is unacceptable.”

By Eric Miller
Staff Reporter