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"Take a little off the top please!" said Benjamin
As of January 1, 2010 a federal tax credit that afforded biodiesel makers a cost-cut has expired. Previously, government funding provided $1 to all manufacturers per gallon of biodiesel gas produced. Even though biodiesel is more eco-friendly and reduces petroleum use, these added costs will make it difficult for most of these companies to operate.
Increased greenhouse gases and the high costs of diesel were the driving force for the biodiesel industries. Now, since diesel prices have dropped 18% during the start of the recession the urgency to fund these operations has dwindled. Not to mention the import tariffs that were imposed by the European Union on all biofuels entering those countries. Before the increased taxes Europe accounted for 95% of all exported biodiesel from U.S. makers.
With the biodiesel industry operating at 15% of its potential, the 180 biodiesel plants that are operating nationwide are feeling the crunch. Many smaller producers have even had to close their doors.
With such great potential to reduce foreign oil dependency, strengthen the economy and protect the environment one would think that a federal tax credit would be a win-win situation.
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