Bill Could Renew Biodiesel Credit

John Davis

The $1-a-gallon tax credit that biodiesel now enjoys… but is set to expire at the end of this year… could have new life if a new piece of legislation makes it through Congress this year.

According to the Northwest Arkansas News, Sen. Blanche Lincoln (D-Ark.) has introduced legislation that will promote several renewable energy options, including the biodiesel credit:

blanchelincolnLincoln said she introduced legislation to do the following:

· Provide parity in the value of the credit for all renewable energy resources, increasing the value of the credit to full credit level for those resources that now get only a partial credit;

· Encourage innovation and entrepreneurship through alternative energy and conservation incentives; and

· Allow electricity from biomass used on-site to qualify for a tax credit – the Renewable Electricity Production Tax Credit.

Alternative energy sources, such as biomass and biofuels, offer job-creation opportunities for new and expanding small businesses, and she is pushing for incentives to help build a strong alternative-energy industry in the state

The article goes on to say that Lincoln feels these incentives are necessary to sustain the renewable fuels market.

Biodiesel, Government, Legislation