Senate Must Extend Biodiesel Tax Credit by Dec. 31, Producers Warn

Biodiesel producers are threatening to shut down their operations if the Senate does not approve a bill that would extend the $1 per gallon biodiesel tax credit due to expire Dec. 31.

Over the past few years, the tax credit has allowed the industry to compete with cheaper and more efficient conventional diesel fuels, according to a study released this month for the National Biodiesel Board.

“Since it was enacted in 2004, the biodiesel tax incentive has allowed the nation to reap the economic, energy security and environmental benefits associated with commercial sale production and use of biodiesel,” said Manning Feraci, vice president of federal affairs for the NBB.

“Allowing the credit to lapse will compound the already daunting challenges facing the industry and will cost the national another 23,000 jobs in addition to the 29,000 jobs that were shed in 2009,” he said.

By Eric Miller
Staff Reporter