Legislation Would Extend Biodiesel Tax Incentive

Cindy Zimmerman

NBB Biodiesel and soybean grower interests were happy to see legislation introduced this week that would extend the biodiesel tax incentive. According to a release from the National Biodiesel Board and the American Soybean Association, the bill was introduced yesterday by Senate Finance Committee Chairman Chuck Grassley (R-IA) and Ranking Member Max Baucus (D-MT). The Grassley/Baucus bill, S. 2401, extends popular alternative energy tax incentives, such as the biodiesel excise and income tax incentive for biodiesel and biodiesel blends. It also gives a one-year extension until 2010 to a tax credit for the cost of installing pumps that offer a 20 percent blend of biodiesel (B20). Darryl Brinkmann, chairman of NBB and a soybean producer from Carlyle, Ill., said that biodiesel and soybean leaders have already seen the results of the biodiesel tax incentive. Last year, U.S. biodiesel production tripled to 75 million gallons. “Passage of the tax incentive gave the biodiesel industry the confidence to grow as we work to keep up with the skyrocketing demand for biodiesel,” Brinkmann said. “Consumers across the nation have benefited because the biodiesel tax incentive has helped make biodiesel more cost competitive.”

Biodiesel, Legislation