Tax Extenders Act Omits Alternative Fuel Mixture Credit

The House of Representatives on December 9th passed a bill (H.R. 4213) that extends many of the tax credits and incentive programs that expire at the end of this year.  The bill was referred to the Senate Finance Committee.
While the bill extends for one year the biodiesel tax credit and the biodiesel mixture credits under Section 40A of the Internal Revenue Code, the bill does not extend the alternative fuel mixture credit under IRC Section 6426(e).  The alternative fuel mixture credit currently applies to alternative fuel producers who produce a liquid fuel from biomass that does not meet the requirements for biodiesel and that is mixed with diesel (or other taxable fuel) for use in a business.
Unless the Senate passes a version of the bill that extends the alternative fuel mixture credit and that measure is included in the bill when it emerges from the conference committee, the alternative fuel mixture credit will expire on December 31, 2009.

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