State senators want to increase the amount of biodiesel produced in Nebraska and are willing to pay for it.

The Legislature gave first-round approval Wednesday to a bill (LB343) that would provide income tax credits of up to 250 thousand dollars to people who invest in construction of plants in Nebraska that produce biodiesel.

Biodiesels are fuels produced from biological sources such as vegetable oils.

The credits could reduce state revenue by about two million dollars annually. But supporters say the returns from new business in the state will be worth the cost.

To qualify, plants must do all the processing in Nebraska and have majority ownership by Nebraskans.