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House approves extension of biodiesel credit that industry calls vital
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12/09/09 08:34 PM ET
The broad $31 billion tax extenders package the House approved Wednesday afternoon includes a one-year extension of the $1-per-gallon tax credit for biodiesel that is set to lapse at year's end.
The bill, approved 241-181, would extend the credit through 2010, but the Senate must still act on the plan.
The industry’s main trade group, the National Biodiesel Board, warned in a report Tuesday that letting the incentive die would be disastrous for an already troubled industry.
The report notes that the industry is already producing far below its capacity, and has been hit hard by volatile commodity prices and weakened fuel demand caused by the economic downturn.
Total sales this year are projected to be 31 percent below 2008 levels, the trade group said. "Elimination of the tax credit will essentially erase all profitability in the biodiesel industry leading to a complete decline in output, expenditures, and jobs,” the report states.
The bill, approved 241-181, would extend the credit through 2010, but the Senate must still act on the plan.
The industry’s main trade group, the National Biodiesel Board, warned in a report Tuesday that letting the incentive die would be disastrous for an already troubled industry.
The report notes that the industry is already producing far below its capacity, and has been hit hard by volatile commodity prices and weakened fuel demand caused by the economic downturn.
Total sales this year are projected to be 31 percent below 2008 levels, the trade group said. "Elimination of the tax credit will essentially erase all profitability in the biodiesel industry leading to a complete decline in output, expenditures, and jobs,” the report states.
