The $1 a gallon tax credit for biodiesel will run through 2013 at a cost of
more than $2 billion under a provision of the mammoth legislation passed by
Congress to avoid the so-called "fiscal cliff."
In reviving the credit, lawmakers made the extension retroactive to its
expiration at the end of 2011. It now is set to expire at the end of this year.The credit was one of an eclectic mix of handouts, takebacks and special-interest tax breaks included by Congress in the last-minute deal to avoid the automatic spending cuts and tax increases that otherwise would have kicked in for 2013.
