01 August 2012 21:35 [Source: ICIS news]MEDELLIN, Colombia (ICIS)--The $1/gal (€3/litre) federal biodiesel tax credit could be extended under a proposal released on Wednesday by the US Senate Finance Committee.
The credit would be extended for one year, to expire on 31 December 2013 and would be effective retroactively to 31 December 2011.
“Extending these tax-cutting provisions gives certainty to middle-class families and businesses across the country, and it helps support the jobs our economy needs,” Senate Finance Committee Chairman Max Baucus (Democrat-Montana) said. “We’re facing serious challenges with the fiscal cliff at the end of the year, and this win shows we’re able to come together to tackle tough problems.”
The fate of that incentive is considered to be critical by most biodiesel producers.
When the credit lapsed in 2010, dozens of plants shut down and thousands of jobs were lost as production plummeted to the lowest level since 2006.
“This legislation demonstrates that there is a will to subject long-standing tax policies to the full and much-needed public scrutiny of the American people,” Ranking Member Orrin Hatch (Republican-Utah) said. “This is a first step towards the ultimate goal of comprehensive tax reform that shows that there is a path to resolving the challenges we face as a nation.”
The tax extender package, which will be voted on in committee on Thursday, also proposes to extend the $1.01/gal cellulosic credit to fuels made from cultivated algae, cyanobacteria or lemna. The algae credit would apply to producers who sell their fuel to refineries for further processing.
Biodiesel is an alternative fuel, produced from renewable resources. The most commonly used feedstocks are rapeseed, soy and palm oil.($1 = €0.81)
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