Biodiesel Tax Credit Extension

The biodiesel industry had not given up since losing its tax cedit at the end of 2009. Iowa is one of the states that was greatly affected by the removal of this tax credit. They believed that supporting this tax credit allowed for more green jobs for the people of the state of Iowa.

The passing of the biodiesel tax credit would allow for an instant increase of more than one thousand jobs, in a very short period of time. There has been a lot of lobbying in the house of commons and asking for this tax credit to be reinstated. President Obama supported the idea but he had to convince the congress to bring back this tax credit.

Since the congress is made up mostly of his party, he only needs to pull strings the same way he did with health care and this issue with the biodiesel tax could be instantly solved. A few senators had worked hard to try to keep the tax credit on initiatlly but it was very difficult for them to do so it ended up being taken away.

All that lobbying has paid off…

The $1 per gallon tax credit for biodiesel was then extended by the US senate. Biodiesel production had dramatically decreased since the tax credit had expired late 2009.

This tax credit is given to those who blend biodiesel and conventional fuel. The hope in the industry is that the extension of the tax credit will ultimately revive the industry leading to an increase in bio diesel production.