Ethanol, biodiesel tax credits included in Obama tax deal

In Washington, Senator Chuck Grassley of Iowa told reporters that ethanol and biodiesel tax extensions are included in an omnibus tax deal struck by President Obama and Republicans. Grassley could not say the exact amount of the proposed ethanol tax credit, but said that the deal would extend both credits through 2011 and would apply the credit retroactively to biodiesel for the whole of 2010. House Democrats have split over the tax deal, which outgoing House Speaker Pelosi has described as a “bridge too far” over the proposed reductions in prospective estate taxes, in addition to an extension of Bush-are tax cuts for the wealthiest Americans.

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