U.S. Senate panel to vote on biodiesel tax package

The U.S. Senate Finance Committee will begin work on Thursday on a package to extend tax credits for biodiesel production as part of its markup of the so-called tax extenders legislation.

Under the proposed bill, the $1.00 per gallon tax credit for biodiesel producers will be extended through 2015. It also includes a small agri-biodiesel producer credit of 10 cents per gallon and the $1.00 per gallon tax credit for diesel fuel created from biomass.

These extensions are expected to cost $2.6 billion over 10 years, the Committee said. The industry has been operating without the credits since the fiscal year ended in September.