No Extension For Biodiesel Credit

The American Soybean Association (ASA) reports that the biodiesel tax credit in expired on December 31. While legislation to extend the biodiesel tax incentive and other expiring tax provisions passed the House of Representatives, the Senate’s singular focus on health care legislation prevented action on a tax extenders package.

While the lapse in the tax credit will deal a severe blow to the U.S. biodiesel industry, ASA said they will continue to work to reinstate the credit retroactively in 2010. ASA said they are encouraged by a recent letter that Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Chuck Grassley (R-IA) sent to Senate leadership informing them that the Finance Committee will take action early in the new year to extend retroactively the biodiesel tax incentive and other expiring tax provisions. ASA is urging everyone to contact their Senators for quick action to extend the biodiesel tax incentive.