17 December 2010 16:57 [Source: ICIS news]
HOUSTON (ICIS)--The US House of Representatives approved a legislative package containing reinstatement of the federal tax incentive on biodiesel and extending the credit through 2011, the National Biodiesel Board (NBB) said on Friday.
The House approved HR 4853, the Tax Relief, Unemployment Insurance Reauthorisation, and Job Creation Act of 2010, matching the Senate’s approval.
President Barack Obama was scheduled to sign the bill on Friday at 15:50 hours US east coast time (19:50 hours GMT), according to the White House.
The biodiesel tax incentive is structured to the biofuel market competitive price position to conventional diesel fuel, the NBB said.
Expiration of the incentive on 31 December, 2009 is widely considered to have led to the near collapse of the US biodiesel industry, sources said.
Reinstatement and extension of the tax incentive through 2011, as provided for in the tax bill, is expected to increase US biodiesel production, according to the NBB.The measure would also extend for one year the federal subsidy for corn-based ethanol and the corresponding protective tariff against imported ethanol.
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