Kerry Proposes New Biodiesel Tax Break Renewal Route

John Davis

The renewal of the $1-a-gallon biodiesel tax credit seems to have been left in the doldrums as the U.S. Senate went to August recess without agreement on the number of amendments to the Small Business Bill, which contained a renewal of the incentive.

But Biodiesel Magazine reports that a whole new bill, “The Clean Energy Technology Leadership Act of 2010,” introduced by Sen. John Kerry of Massachusetts, could provide a new path for restoration of the biodiesel tax incentive:

Kerry’s bill will extend the excise tax credit for biodiesel and renewable diesel retroactively for 2010 and through 2012, according to a statement by Kerry’s office on the content of the bill. “While we continue to fight to bring comprehensive energy legislation to the floor of the United States Senate, it’s essential that we take action to start moving in the right direction,” said Kerry. “Providing incentives for clean energy production will drive our economy forward and take us one step closer to reducing our carbon emissions and ending our dependence on foreign oil.”

Also included in the bill are provisions to include algae-based fuels in the cellulosic biofuel tax credit, provide $3.5 billion more in clean renewable energy bonds, and a number of other energy efficiency-based incentives.

I don’t want to sound pessimistic, but we have heard this story before. Lets see if Senate leadership will allow this to go through.

Biodiesel, Government, Legislation