Biodiesel producers are scrambling for extension of tax credits they call vital that are scheduled to expire at year’s end.
The industry says its viability rests on the $1 per gallon incentive, and is backing legislation introduced in both chambers to renew it for several years. At the very least, a short-term renewal could be part of the annual year-end tax extenders bill.
The industry is in tough shape and many plants are idle. The National Biodiesel Board, in a statement last week calling for the extension, didn’t mince words about the importance of the subsidy. “Absent the biodiesel tax incentive, the use of biodiesel in the marketplace will be cost prohibitive, and the domestic production and use of biodiesel will cease,” the group said.
The Houston Chronicle has an expansive take on the producers’ push for continued incentives and the state of the industry this morning.