Last week the Senate Finance Committee passed legislation to extend various tax credits (tax extenders) that have expired.
There are a number of tax extenders in the bill concerning renewable fuels. The bill extends a number of biodiesel tax credits: the $1 per gallon tax credit for biodiesel is extended for two years; the small agro-biodiesel producer credit of 10 cents per gallon; and the $1 per gallon tax credit for diesel fuel created from biomass is extended as well.
Other renewable fuels tax extenders include: two year extension of the 30% investment tax credit for alternative vehicle refueling property (fuel pumps for ethanol, biodiesel, liquefied hydrogen, etc).
The bill extends the production tax credit for two years for cellulosic biofuel production facilities, allowing claims of a $1.01 per gallon production tax credit.
The 50 cents per gallon alternative fuel tax credit and alternative fuel mixture tax credit is extended for two years.
Another key provision for many agriculture companies is the extension of the tax credit for research and development.