Biofuels credits reinstated

Congress reinstated the biodiesel blenders credit and extended the cellulosic biofuels producer tax credit as part of the package to avoid falling off the fiscal cliff.

Under legislation passed by Congress this week, the $1-per-gallon blenders credit for biodiesel and renewable diesel which expired Dec. 31, 2011, will go back into effect retroactively for 2012 and extend to the end of 2013. (Photo courtesy of the Renewable Energy Group)The House of Representatives on Tuesdaypassed by a vote of 257-167 a bill to avert a set of automatic tax increases that would have gone into effect Jan. 1. The bill passed the Senate 89-8 Monday and is expected to be signed by President Barack Obama.

Under the legislation, the $1-per-gallon blenders credit for biodiesel and renewable diesel which expired Dec. 31, 2011, will go back into effect retroactively for 2012 and extend to the end of this year.