Advanced biofuel producers ask Congress to extend tax credits

Source: By Erin Voegele, Biomass Magazine • Posted: Thursday, February 14, 2019

A group of advanced biofuel producers are urging leaders of the U.S. House Committee on Ways and Means to extend two tax credits that are critical to the development and deployment of advanced biofuels.

On Feb. 7, Aemetis, Enerkem, Fiberight, Fulcrum Bioenergy, LanzaTech, Novozymes and Velocys sent a letter to Committee Chairman Richard Neal, D-Mass., and Ranking Member Kevin Brady, R-Texas, asking the committee to extend the second generation biofuel producer tax credit (PTC) and the special depreciation allowance for second generation biofuel plant property.

“These incentives expired at the end of 2017 after retroactive extension in the Bipartisan Budget Act of 2018,” the groups wrote in the letter. “Against the backdrop of permanent federal tax incentives for our competitors in the oil and gas industries, lapsing advanced biofuel incentives create inequity and uncertainty for advanced biofuel investors and jeopardize project development in the United States.”

Within the letter, the companies note they are at the forefront of the development of low-carbon, innovative fuels. “We are commercializing technologies to convert municipal solid waste (MSW) into low carbon motor fuels, biochemicals and other products,” they wrote. “The second generation biofuel PTC and depreciation allowance level the playing field and enable our companies to create new jobs, lower carbon emissions and diversify our nation’s energy supply. However, ongoing delay in the effort to extend these credits puts these investments and benefits at risk.”

In the interest of job creation, infrastructure development, innovation, energy security and energy tax parity, the letter asks Congress to immediately pass a seamless, multi-year extension of both credits to insure the advanced biofuel industry will be able to account for those credits in this year’s tax filings.

A full copy of the letter can be downloaded from the Advanced Biofuels Business Council website.