The Senate Pulls The Plug On Bio-diesel. They have stopped the Bio-diesel tax credit in the H.R. 4213 Tax Extenders Act. Harry Reid Cuts Bio-diesel Tax Credit from Senate Jobs Bill. Most of the US Bio-diesel production plants shut down operations when the tax credit expired on December 31, 2009. The idol plants must make loan payments or they will be bankrupt. They have been loosing money for the past 45 days. Also the EPA did not up the ethanol blend mandate in gasoline from 10% to 15% like they said they were going to do. There will be many lost jobs soon. So much for Obama's green jobs lie.