By OGJ editors
HOUSTON, Oct. 26 -- President George W. Bush signed a bill Friday that extends the fuel-ethanol tax credit and creates a tax credit for biodiesel fuel.
The incentives, which will take effect Jan. 1, 2005, and remain in effect for 2 years, are part of H.R. 4520, the American Jobs Creation Act of 2004.
Sens. Chuck Grassley (R-Iowa) and Blanche Lincoln (D-Ark.), Rep. Kenny Hulshof (R-Mo.), and others supported the tax incentives, which received strong backing from the National Biodiesel Board, American Soybean Association, and US Department of Agriculture.
The incentives, they claim, are expected to increase biodiesel demand to at least 124 million gal/year from 30 million gal in fiscal year 2004, based on a DOA study.
