Ophir Resources Co. (SUFF)

[jufel]

Senators Reid, Baucus Propose Biodiesel Tax Credit Extension

www.businessweek.com/news/2010-03-01/senators-reid-baucus-propose-biodiesel-tax-credit-extension.html

"March 1 (Bloomberg) -- An extension of the $1-a-gallon tax credit for biodiesel, which expired Dec. 31, is part of legislation introduced today in the U.S. Senate to aid small businesses and unemployed workers.

Legislation from Senate Majority Leader Harry Reid, a Nevada Democrat, and Senator Max Baucus, a Montana Democrat, would extend the biodiesel credit for one year. The biodiesel industry has said the tax credit is needed to revive production.

The Senate legislation would also extend other business tax breaks, unemployment benefits and health insurance subsidies for the families of jobless workers, Baucus said in an e-mailed statement.

“Extending these tax cuts creates the right environment for job creation,” Baucus said.

He said the tax credit would be extended retroactively.

There are 173 biodiesel plants with annual capacity of 2.7 billion gallons, according to the National Biodiesel Board. The group estimates that production of the fuel has ground to a near halt since the tax credit expired.

The tax credit helps make biodiesel competitive with conventional forms of the fuel. Biodiesel, which is made from vegetable oils or waste grease, cost about $3.34 a gallon in the Midwest, according to data compiled by Bloomberg. Diesel in Chicago is fetching $2.0135 a gallon