Biodiesel Tax on Memorial Day Recess

In a voting frenzy prior to the Memorial Day recess, the U.S. House of Representatives has extended the $1 a gallon biodiesel tax credit that expired Dec. 31, despite indications even late that the vote would be delayed until June.

The extension, which was part of a package that includes, continued unemployment benefits and other tax breaks, would keep the biodiesel credit in place until the end of this year. The legislation still needs to be approved by the Senate, but that vote is not expected until after the recess.

On behalf of the state’s biodiesel plants, nearly half of which are idled or shuttered, the Iowa Biodiesel Board today applauded the U.S. House of Representatives for passing a bill that included extension of the federal biodiesel tax incentive.

The biodiesel industry desperately waited for Congress to act on H.R. 4213, The American Jobs and Closing Tax Loopholes Act of 2010, to reinstate the much needed $1 per gallon tax credit before the Memorial Day recess, but time for this to happen has run out essentially. The tax credit will be retroactive as written and the RFS2 volume requirements will go into effect on July 1 regardless of the tax credit’s status.