The tax-cut package, under debate by the Senate on Friday, includes a few stipulations that would, if passed, provide a boost for the biofuels industry. Wrapped within the tax bill is a provision that would extend, through 2011, the 45-cent-per-gallon ethanol tax credit that's set to expire on December 31st. Also included within the package is an extension of the 54-cent tariff on imported ethanol and a 10-cent credit for small-scale U.S. producers of the corn-based fuel.

In addition to subsidies for ethanol, the Senate bill also includes some fine print that would revive, through 2011, the $1 per gallon biodiesel tax credit that expired at the end of 2009 and extend, by one year, an alternative fuel credit for diesel created from biomass. All told, there's significant government interest in biofuels buried within a complicated tax-cut bill that is moving through Congress. Iowa Senator Chuck Grassley, an outspoken supporter of biofuels, said of the bill, "Letting these items lapse would be a case of penny-wise, pound-foolish legislating."

There's news for plug-in drivers, too. Plug In Cars is reporting that the most-current tax cut extension bill includes the "Alternative Fuel Infrastructure Tax Credit," which could extend the tax credit of either 30 or 50 percent of the cost of installing plug-in vehicle chargers, as well as natural gas and hydrogen pumps. If nothing is passed, this credit will end on December 31st.

[Source: Reuters, Plug In Cars]

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