Congress fails to extend US biodiesel tax credit

icis.com
17 December 2009 22:25 [Source: ICIS news]

HOUSTON (ICIS news)--The US Senate has declined to vote on a bill that would extend a blending tax credit the biodiesel industry considers crucial for its survival, the National Biodiesel Board (NBB) said on Thursday.

The Senate would not be able take up the tax-extenders bill before the end of the year, sources said. The one dollar per gallon tax credit expires on 31 December.

NBB spokesman Michael Frohlich said the Senate is occupied by health care reform legislation, which precludes it from acting on tax credit legislation before year’s end.

Also, the House and Senate would need time to work out the differences between different versions of the tax credit bill, he said.

The NBB was working to make the issue a top legislative item when Congress meets again in January, Frohlich said. The tax credit extension would be made retroactive to 1 January to ensure continuity of the credit, he said.

“If they act swiftly they can minimise the damage to the industry,” Frohlich said.

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