Proposed legislation would extend biodiesel tax credits

| 3/16/2006

Sens. Chuck Grassley, R-IA, and Max Baucus, D-MT, have introduced legislation in the U.S. Senate that would extend biodiesel tax incentives put in place in 2004.

According to a news release from the National Biodiesel Board, the bill, if passed, would extend the biodiesel excise and income tax credit for biodiesel and biodiesel blends until Dec. 31, 2010. The current tax is set to expire in 2008.

The bill would also give a one-year extension to a 30 percent tax credit for the cost of installing pumps used for distributing B20 at fueling stations.

Darryl Brinkmann, chairman of the National Biodiesel Board, said in a written statement that the tax incentives are important because they help keep biodiesel prices competitive with those of regular diesel.

The bill is currently under consideration by the Senate Finance Committee.