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Biodiesel tax incentive set to expire

Not only has Congress left town without extending the payroll tax cut…they also failed to extend the biodiesel tax incentive. The $1.00 per gallon incentive lapsed in 2010 causing biodiesel production to plummet. The incentive was reinstated at the start of this year resulting in record biodiesel production nearly triple the 2010 output. The National Biodiesel Board says that production accounted for 39,000 jobs, $3 billion in GDP and $628 million in federal, state and local tax revenue.

The $1.00 per gallon tax credit is set to expire on December 31st. There is the possibility that Congress could pass a retroactive tax credit when they return to Washington after the first of the year. The 2011 credit was retroactive to cover all of 2010.