Representatives Earl Pomeroy, D-N.D., and Kenny Hulshof, R-Mo., introduced legislation to extend a tax credit for biodiesel Thursday, the first day of the new Congress.
The Renewable Fuels and Energy Independence Promotion Act would make the federal excise tax credit for biodiesel, currently set to expire in 2008, permanent.
"If renewable fuels are to displace significant amounts of petroleum as fuel, we must take bold, aggressive steps to achieve this end," Hulshof says. "History has shown us that the tax incentive works and a long-term commitment to federal policy that supports renewable fuels will help provide stability, promote growth, and lessen our dependence on foreign oil."
The National Biodiesel Board says in a statement that if the bill is passed, it "would likely lead to dramatic and sustained growth of biodiesel use."
The American Soybean Association also voiced its support for the bill.
"This legislation will help support the price of our soybeans by creating long-term demand for biodiesel made from soybean oil. In turn, it will allow soybean growers to make