The U.S. Congress approved keeping biodiesel subsidies

The U.S. government established a tax credit of $ 1 per gallon of biodiesel by 2013, with a total cost to the Treasury of 2,000 million dollars, as part of a law passed by Congress to prevent the so called "tax gap" , as published by Reuters.
This subsidy will cost 2,200 million dollars over 10 years for the American state.

By reviving the tax credit, lawmakers made retroactive tax extension to the expiry date, in late 2011. Now, the tax credit will be in effect until the end of 2013.


The loan is part of a series of subsidies or exemptions included by Congress in a package to prevent the enforcement of tax increases and spending cuts automatic since January 1, 2013.



Meanwhile, Iowa Sen. Chuck Grassley, supported the measure and said he hopes the tax credit is extinguished at some point, but there are no plans to do so for now.



Because about 25% of U.S. soybean oil used for biodiesel production, along with resume lending to the product, Congress extended a credit of $ 1 per gallon for diesel produced from biomass and a credit $ 0.10 available for small agricultural producers of biodiesel.