Advanced biofuel tax incentives

A group of biofuel trade organisations have sent a letter to Senate Finance Committee Chairman, Orrin hatch and Ranking Member Ron Wyden, encouraging extension of critical advanced biofuel tax incentives namely the Second Generation Biofuel Producer Tax, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, and the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit.

The letter

The letter reads, in part, “the advanced biofuels industry is at a critical stage in development. Last year, several new, commercial scale advanced biofuel facilities began operations and, despite a difficult financial market, the industry continues to make progress on dozens of additional projects. Advanced biofuel tax credits have moved these projects to commercial production by reducing the cost of production and by developing first of kind technologies to deploy the most innovative fuel in the world.

“As leaders in a critical innovation sector in the US, we are well aware of the financial constraints facing this country. However, the US’ global competitors are offering tax incentives for advanced biofuels and are attracting construction of new facilities. We encourage Congress to continue the development of these homegrown technologies and urge extension of these credits. Furthermore, domestic biofuel producers are competing with incumbent fossil energy industries who continue to enjoy tax incentives and other subsidies on a permanent basis.

“In the interest of energy security, job creation, global competitiveness, and forward looking policy, we urge you to move quickly to extend expired advanced biofuel tax provisions for multiple years retroactive to January 1 2015. We look forward to working with you on this important matter.”

Edited from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/20072015/advanced-biofuel-tax/