The House of Representatives voted 241 to 181 to approve a “tax extenders” bill (H.R. 4213) that would provide a one-year extension to the $1 per gallon tax credit for biodiesel and renewable diesel fuel. This extension is important to ensure that the Renewable Fuel Standard, which requires the use of 650 million gallons of biodiesel next year, will not amount to a hidden tax on the trucking industry.
Even with the tax credit, the price of biodiesel derived from vegetable oil is significantly more expensive than petroleum-based diesel fuel. The Senate also must pass an extension or the current tax credit will expire at the end of the year.
Posted on Sat, December 12, 2009