Biodiesel companies fret about expiring tax break

Chron.com (The Houston Chronicle)
By BRETT CLANTON Copyright 2009 Houston Chronicle
Nov. 23, 2009, 9:55PM

The U.S. biodiesel fuel industry, already reeling from a string of recent setbacks, is facing what could be a knock-out punch unless a critical federal subsidy is renewed in the coming weeks.

Domestic producers of the alternative fuel in Texas and elsewhere likely will have to halt operations and cut jobs if Congress fails to extend a $1 per gallon tax credit, set to expire Dec. 31, industry leaders said.

Legislation introduced last week in the House would extend the incentive for five years and change the way it is administered. But the bill, authored by Reps. Earl Pomeroy, D-N.D., and John Shimkus, R-Ill., probably must be attached to a broader legislative package to have a shot at passing. Efforts in the Senate to renew the credit are also under way.

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