(Notícia em Inglês)
The U.S. biodiesel industry sought renewal of the $1 a gallon tax credit following its expiration at the end of 2009.
Leaders say renewal of the credit would be a shot in the arm. Production has slumped in 2010. As part of encouraging biofuels, Congress created the $1 a gallon tax credit for biodiesel in 2004. The credit was extended twice, most recently in 2008 with expiration at the end of 2009.
The credit reduces the price of biodiesel compared to petroleum-based diesel fuel. Blenders who mix biodiesel with traditional diesel fuel will benefit from the credit. Biodiesel is sold in a variety of blend ratios, such as B2 and B5.
Lawmakers have offered a one-year revival of the credit, retroactive to Jan 1. The House and Senate supported the revival as part of differing bills but have not agreed on a bill that includes the credit.
Biodiesel production climbed from 25 million gallons in 2004 and totaled 691 million gallons in 2008. It dropped to roughly 500 million gallons in 2009 due to wider economic woes and volatile commodity prices, the National Biodiesel Board said. It said soy-based biodiesel cost $1.20 per gallon more to produce than conventional diesel in 2008-09. Industry capacity is 2.7 billion gallons a year.
reuters.com»
The U.S. biodiesel industry sought renewal of the $1 a gallon tax credit following its expiration at the end of 2009.
Leaders say renewal of the credit would be a shot in the arm. Production has slumped in 2010. As part of encouraging biofuels, Congress created the $1 a gallon tax credit for biodiesel in 2004. The credit was extended twice, most recently in 2008 with expiration at the end of 2009.
The credit reduces the price of biodiesel compared to petroleum-based diesel fuel. Blenders who mix biodiesel with traditional diesel fuel will benefit from the credit. Biodiesel is sold in a variety of blend ratios, such as B2 and B5.
Lawmakers have offered a one-year revival of the credit, retroactive to Jan 1. The House and Senate supported the revival as part of differing bills but have not agreed on a bill that includes the credit.
Biodiesel production climbed from 25 million gallons in 2004 and totaled 691 million gallons in 2008. It dropped to roughly 500 million gallons in 2009 due to wider economic woes and volatile commodity prices, the National Biodiesel Board said. It said soy-based biodiesel cost $1.20 per gallon more to produce than conventional diesel in 2008-09. Industry capacity is 2.7 billion gallons a year.
reuters.com»