In Washington, President Barack Obama today signed H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
Last night, the US House of Representatives voted to approve the deal, which extends the ethanol tax credit through 2011, and retroactively extends the biodiesel tax incentive and the renewable diesel incentive through 2011. The bill also renewed the 54-cent tariff on Brazilian ethanol through 2011.
The majority of Â US ethanol and biodiesel interests are most likely overjoyed.
Obviously a long term solution must be put in place to make the industry viable, but I am happy that the short term looks brighter for some of the industry players. The credit has already been shown to be less than a cure-all for the numerous challenges that face the biodiesel industry; even prior to the lapse of the credit the majority of plants stood idle, and there remains uncertainty as to whether or not plants lost over the course of the nearly 12 month lapse will be able to rekindle the spark of operations. That said, there is definite hope that this will revive some of the momentum lost and those of us still standing have had to weather a storm that has likely made us tougher and stronger in an industry that punishes inefficient operations.
I also have to eat some crow. I did not believe that the credit was returning, and I find this to be something of a political “Hail Mary”.
Crow never tasted so good.
Make it a better place!