Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Congress Votes to Reinstate Biodiesel Tax Incentive

The U.S. House Tuesday reinstated the biodiesel tax incentive for 2012 and 2013 as part of a year-end fiscal package that avoided the so-called "fiscal cliff." President Obama is expected to quickly sign the bill into law.

by Staff
January 2, 2013
Congress Votes to Reinstate Biodiesel Tax Incentive

 

3 min to read


The U.S. House Tuesday reinstated the biodiesel tax incentive for 2012 and 2013 as part of a year-end fiscal package that avoided the so-called "fiscal cliff." President Obama is expected to quickly sign the bill into law.

Ad Loading...



The $1 a gallon biodiesel tax credit expired on Dec. 31, 2011. The two-year extension was made retroactive, so it will run through the end of 2013.

"It's been a long year with a lot of missed opportunity and lost jobs in the biodiesel industry. But we're pleased that Congress has finally approved an extension so that we can get production back on track," said Anne Steckel, vice president of federal affairs at the National Biodiesel Board.

A recent study found that the industry would have produced an additional 300 million gallons this year with the tax incentive in place. That would have supported some 19,213 additional jobs, for a total of 83,258 jobs supported by the industry nationwide, according to the study, conducted by Cardno Entrix, an international economics consulting firm.

Looking to next year, the study found that the industry would support some 112,078 jobs nationally with the tax credit in place versus 81,977 without it. Additionally, the return of the incentive is projected to increase household income by some $1.6 billion next year while supporting an additional $3.1 billion in GDP.

Along with these economic benefits, Steckel emphasized that biodiesel is helping reduce America's dependence on imported petroleum and making us less vulnerable to global petroleum markets that continue to disrupt the economy and threaten our national security, while significantly reducing tailpipe pollution and greenhouse gas emissions.

"This is important not just for jobs but for diversifying our energy supplies, improving our energy security and reducing costly emissions," Steckel said.

The $1-per-gallon biodiesel tax incentive was first implemented in 2005. Congress has allowed it to lapse twice, in 2010 and again in 2012. Under the legislation approved by the House on Tuesday and first passed by the Senate on Monday, the incentive will be reinstated retroactively to Jan. 1, 2012 and through the end of 2013.

Steckel thanked the industry's supporters on Capitol Hill for pressing for the incentive, particularly Sens. Maria Cantwell, D-Wash., and Charles Grassley, R-Iowa, and Reps. Aaron Schock, R-Ill.; and Collin Peterson, D-Minn.

According to Reuters, Sen. Grassley told reporters he expects the credit will be phased out at some point but that there is little sentiment to do so at the moment.

Roughly one-quarter of U.S. soybean oil is used in making biodiesel, although it is being made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats.

Also in the bill was an extension of a $1.01 a gallon credit for making biofuels from cellulose, found in woody plants, trees and grasses, Reuters reports, as well as that made from algae.

More Drivers

Illustration of Department of Labor building, diesel technician at a computer, and driver training semi trailer
Driversby Deborah LockridgeMarch 10, 2026

Federal Proposal Would Allow Pell Grants for Shorter-Term Job Training

The Department of Labor plans to expand Pell Grant eligibility to some shorter workforce training programs, a move the American Trucking Associations said will help strengthen commercial driver training schools and diesel technician training programs.

Read More →
Illustration of truck owner operator and magnifying glass with the word "regulations"
Driversby Deborah LockridgeFebruary 26, 2026

Owner-Operator Model Gets Boost as DOL Proposes 2024 Independent Contractor Definition Reversal

For an industry that has watched this issue go back and forth for years, the independent contractor proposal marks the latest swing in the regulatory pendulum.

Read More →
 Truck with door open and enforcement officer talking to driver about ELD
DriversFebruary 26, 2026

FMCSA Reinstates Field Warrior ELD to Registered Device List

One electronic logging device has been reinstated to the FMCSA's list of registered ELDs.

Read More →
Ad Loading...
Photo of truck driver in yellow safety vest walking alongside tractor-trailer
Driversby Deborah LockridgeFebruary 25, 2026

How One Company is Using Smart Suspension Technology to Reduce Driver Injuries and Improve Retention

America’s Service Line adopted Link’s SmartValve and ROI Cabmate systems to address whole-body vibration, repetitive strain, and driver turnover. The trucking fleet is already seeing measurable results.

Read More →
Illustration with photos from some of the 2026 Best Fleets to Drive For honorees
Driversby News/Media ReleaseFebruary 24, 2026

CarriersEdge Announces 2026 Best Fleets to Drive For

The 18th annual contest recognizing the best workplaces for truck drivers sees changes to Top 20, Hall of Fame

Read More →
Illustration of driver students around trucks with distressed graphic elements and safety cones
Driversby Deborah LockridgeFebruary 19, 2026

FMCSA Targets 550+ ‘Sham’ CDL Schools in Nationwide Sting Operation

The Federal Motor Carrier Safety Administration issued more than 550 notices of proposed removal to commercial driver training providers following a five-day nationwide enforcement sweep. Investigators cited unqualified instructors, improper training vehicles, and failure to meet federal and state requirements.

Read More →
Ad Loading...
 Illustration showing a driver behind the wheel, DOT offices, and examples of problematic non domiciled CDL
Driversby Deborah LockridgeFebruary 18, 2026

DOT Alleges Illinois Issued Illegal Non-Domiciled CDLs

Illinois is the latest state targeted and threatened with the loss of highway funding by the U.S. Department of Transportation in its review of states' non-domiciled CDL issuance procedures. The state is pushing back.

Read More →
 Illustration showing a driver behind the wheel, DOT offices, and examples of problematic non domiciled CDL
Driversby Deborah LockridgeFebruary 12, 2026

FMCSA Locks in Non-Domiciled CDL Restrictions

After a legal pause last fall, FMCSA has finalized its rule limiting non-domiciled commercial driver's licenses. The agency says the change closes a safety gap, and its revised economic analysis suggests workforce effects will be more gradual than first thought.

Read More →
Photo of Stone's Truck Stop
Driversby News/Media ReleaseFebruary 5, 2026

Trucker Path Names Top Truck Stops for 2026

Truck driver ratings reveal the best chain and independent truck stops in the country.

Read More →
Ad Loading...
SponsoredFebruary 1, 2026

6 Dashcam Tactics to Improve Safety & ROI

6 intelligent dashcam tactics to improve safety and boost ROI

Read More →