BIODIESEL TAX INCENTIVE

Feb 1, 2005 12:00 PM

A new biodiesel tax incentive began January 1 that should increase demand for the soybean-based product. The tax incentive is a savings of one cent per percentage point of biodiesel blended with petroleum diesel. By improving biodiesel's pricing, USDA estimates biodiesel demand will increase over the next several years from 30 million gallons to 124 million gallons per year.

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