25 February 2010 21:06 [Source: ICIS news]
HOUSTON (ICIS news)--The US Senate could take up a bill next month that would extend a $1/gal blending tax credit that the biodiesel industry deems necessary for their business to survive, sources said on Thursday.
The legislative body could vote by mid-March on a tax extenders package that would renew the credit, which expired on 31 December, Regan Lachapelle, spokeswoman for Senate majority leader Harry Reid (Democrat-Nevada), told ICIS news.
The bill would make the credit retroactive to the beginning of this year and extend it until the end of 2010.
“We expect to take up … tax extenders following completion of a bill we are currently considering,” Lachapelle said. “We are expecting to wrap up this bill this week or early next week.”
Biodiesel suppliers have been clamouring for the credit to be re-introduced for months, saying the $1/gal credit was necessary to make biodiesel price-competitive with traditional diesel.
Suppliers have said the credit’s demise at the end of the last year forced a halt to transactions and caused some producers to lay off employees.
The House approved the extension in December, but the Senate went into its end-of-year recess before taking up the bill. Reid also stripped the extension from the jobs stimulus bill that went on to win approval earlier this week.
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