Bill Would Make Biodiesel Tax Credit Permanent
September 21, 2006
In late June, a congressional bill was introduced to make the federal excise tax credit for biodiesel permanent. If adopted, the Renewable Fuels and Energy Independence Promotion Bill would likely lead to “dramatic and sustained growth of biodiesel use,” according to the National Biodiesel Board. The tax credit, which took effect in 2005, currently will expire in 2008. Biodiesel is a renewable and biodegradable energy source, and is one of the fastest growing alternative fuels in the country (75 million gallons sold in 2005; the industry is on track to sell 150 million in 2006).