Sen. Charles Grassley (R Ia)
Thursday, June 24, 2010
(Washington, DC - Todd Zwillich, Transportation Nation) The nation's truckers aren’t likely to start pumping biodiesel any time soon, by the looks of the United States Senate. That’s because the resurrection of a big biodiesel tax credit is poised to fall victim to a larger tax and jobs bill, which failed tonight on the Senate floor.
The credit is worth $868 million over ten years to refiners who blend biofuel from soybeans, animal fats, restaurant waste oil and other sources into traditional, petroleum-based diesel. Refiners get a one-dollar tax credit for every gallon they blend, and the savings generally go to making biodiesel more competitive with standard diesel at the pump.
Congress has extended the credit for the last few years, and it still enjoys strong support from both parties. But partisan disagreement over a broader package of tax provisions and unemployment benefits ended the credit. At least for the time being.