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Diamond Diesel Service, Inc., Auto Repair & Service - Diesel, Oakland, CA

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Back To Diesel Products>Biodiesel tax credit restored by Memorial Day? Senate takes action

In Washington, legislation in the US Senate to extend unemployment benefits will include an extension of the $1 per gallon biodiesel tax credit until the end of 2010. The credit will narrow the gap between $3 per gallon biodiesel (trading price in the Midwest) and $1.98 for diesel (trading in Chicago).

Currently nearly all US production has halted at more than 173 biodiesel plants in the US, with a capacity of 2.78 billion gallons, according to the National Biodiesel Board. The tax and benefits package is expected to be taken up by the House of Representatives today and then will face a Senate vote before potentially moving to the White House prior to the US Memorial Day holiday.

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