Bill would close energy tax loophole

| 5/18/2007

A bill introduced in the U.S. House on Thursday, May 18, would pull the plug on a tax loophole for the big oil companies.

Right now, by adding small amounts of biomass to their fuels, big oil can take advantage of a $1-a-gallon tax credit that was intended to help the emerging biofuel industry.

If the House bill becomes law, it would limit the tax credit to operations that are solely in the biofuel business – such as makers of B-20 biodiesel.

Biofuel producers are afraid that if big oil companies get the tax break, it could drive smaller biofuel operations out of business.