House approves extension of biodiesel credit that industry calls vital

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.