The U.S. Senate this week passed a bill containing the reinstatement of the biodiesel blenders' tax credit, a critical piece of policy for the industry that had been allowed to expire at the end of 2009. The American Workers, State and Business Relief Act, included H.R. 4213, the Extenders Package which contains the extension of the US $1 per gallon biodiesel production tax credit. The bill calls for the tax credit to be retroactive to January 1 and runs out on December 31, 2010.

The House passed a similar bill earlier this year and now both bills will need to be reconciled in conference. Timing for final passage and presidential signature remains uncertain.