Biodiesel Tax Incentives May Soon be Reinstated

Biodiesel could soon have significant financial incentives that could make it competitive with conventional petroleum-based diesel. The US House of Representatives passed a measure on May 28th, 2010 to reinstate a $1/gallon biodiesel tax credit until at least December 31, 2010. The measure is a part of the American Jobs and Closing Tax Loopholes Act, which moves to Senate for a vote. If passed and signed into law by President Obama, the biodiesel tax credit has the potential to create new domestic jobs in the alternative energy sector and produce many environmental benefits.

Manning Feraci, Vice President of Federal Affairs at the National Biodiesel Board (NBB), said "Since the tax incentive's inception six years ago, the biodiesel industry has created tens of thousands of green jobs, added $4.1 billion to the nation's GDP and generated $828 million in tax revenue for federal, state and local governments." Biodiesel is biodegradable, nontoxic and has minimal to no sulfur (NBB). It can be blended with petroleum and according to the DOE/USDA, biodiesel reduces lifecycle carbon dioxide levels by 78 percent compared to regular diesel.

Most diesel vehicles allow B20 or even higher blends in their engines without any engine modifications. Any combination of biodiesel and petroleum diesel can reduce carbon dioxide and other greenhouse gas emissions! There are 19 biodiesel fueling stations in cities all over Colorado, including the Denver Metro area, Boulder, Colorado Springs, Pueblo, Moffat, and Steamboat Springs. Find the station closest to your destination using the Alternative Fueling Station Locator and start using biodiesel today!