Congress seems to be in no hurry to renew the $1-a-gallon federal biodiesel tax credit. And this analysis from Bloomberg BNA indicates that the biodiesel credit, as well as some other renewable energy credits, won’t come until later this year but at least will be applied retroactively.
“I think Congress has gotten over the idea that the world will stop spinning if they don’t rush back and do extenders,” said [John Gimigliano, principal in charge of the energy sustainability group in KPMG's Washington national tax practice], who previously served as senior tax counsel for the House Ways and Means Committee.
While Gimigliano said quickly passing legislation on tax extenders will be “very difficult,” he said Congress would be likely to approve a legislative package in 2014 that extends the expiring provisions retroactively.
Any interest in moving quickly on tax extenders is likely to come from the Senate, where Sen. Orrin Hatch (R-Utah), ranking member of the Senate Finance Committee, has said committee staff from both parties have started the process of developing extenders legislation.
One legislative vehicle probably would be a bill needed possibly in March to extend the debt ceiling, although Congress may wait until after the November elections to act, analysts said.
Another thing bogging down the renewal of the credit is the nomination of Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, to become U.S. ambassador to China. Some analysts believe it might not be until the November elections before the biodiesel credit is renewed.