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US – The US Senate this week voted by a 81 to 19 margin to approve the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
The legislation, which reflects the framework of the tax agreement reached by President Obama and Congress, retroactively extends the biodiesel tax incentive through 2011.
“The National Biodiesel Board (NBB) is pleased by the Senate’s vote to retroactively extend the biodiesel tax incentive,” said Manning Feraci, NBB Vice President of Federal Affairs.
“This will help ensure that the nation reaps the job creation, energy security, and environmental benefits associated with the expanded domestic production and use of biodiesel in the coming year.”
Biodiesel is a commercially viable, renewable, low carbon diesel replacement fuel that is widely accepted in the marketplace. The fuel meets an exact commercial fuel specification (ASTM D6751) and is the only domestically produced, commercial scale fuel that qualifies as an Advanced Biofuel under the Renewable Fuels Standard.
The biodiesel tax incentive is structured in a manner that makes the fuel price competitive with conventional diesel fuel in the marketplace. The lapse of the tax incentive on 31 December 2009 has had a detrimental impact on the domestic biodiesel industry.
Conversely, retroactive reinstatement and extension of the tax incentive through 2011, as provided for in the tax bill approved by the U.S. Senate, is widely expected to increase U.S. biodiesel production and in the process, displace foreign petroleum with a domestic Advanced Biofuel.
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 will now be forwarded to the U.S. House of Representatives for further consideration. The US House must also approve the legislation before it can be presented to President Obama for signature.
“The NBB urges the US House to pass this tax package before adjourning for the year,” concluded Feraci.
Sceptre Group Limited is a specialist investment firm focused in low carbon financial investments such as sustainable biofuel plantations, agricultural farmland and green technologies. For more information on Biofuel Investments, please visit Sceptre Group’s website at www.sceptreinternational.com.