The House on Dec. 9 approved the Tax Extenders Act of 2009 (HR 4213), including a one-year extension, through Dec. 31, 2010, of the biodiesel tax incentive. However, the bill faces an uncertain outlook in the Senate. Representatives passed the extenders bill by a vote of 241-185, largely along party lines. 

The biodiesel tax incentive currently is set to expire on Dec. 31, 2009, and proponents of the extension say production will cease if the tax incentive is not extended. “Uncertainty relating to federal policy that is vital to the industry’s survival is sending inconsistent signals to the marketplace and undermining investor confidence in the industry,” according to the American Soybean Association. ASA members soon will visit Washington to press the Senate into taking similar action.  

The White House supported the overall bill and said the extension of the tax credit for biodiesel and renewable diesel would provide "clean energy companies with the certainty they need to make critical investments in the nation's energy future." The bill would provide around $31 billion in tax breaks through one-year extensions of more than 40 provisions that are scheduled to expire at the end of the year. 

An aide to Senate Finance Committee Chairman Max Baucus (D-Mont.) said the chairman is focused on finishing the extenders bill this year after the Senate ends work on the health care overhaul. While some say Congress could delay resolution of the extenders issue, given that most of the provisions can be extended retroactively, any delay would negatively impact biodiesel facilities and investments.