Industry seeks multiyear extension of tax credits

Source: Amanda Peterka, E&E reporter • Posted: Tuesday, March 25, 2014

The biofuels industry yesterday urged key senators on the Finance Committee to extend several tax incentives that expired at the end of last year.
A wide array of biofuels groups, from corn ethanol to algae producers, wrote to Senate Finance Chairman Ron Wyden (D-Ore.) and ranking member Orrin Hatch (R-Utah) seeking a multiyear extension of the four tax credits retroactive to Jan. 1. The credits include the $1.01-per-gallon second-generation biofuel producer tax credit and the $1-per-gallon biodiesel incentive.”The advanced biofuels industry is at a critical stage of development. … Advanced biofuel tax credits have allowed the biofuels industry to make great strides in reducing the cost of production and developing first-of-kind technologies,” the groups wrote.The Advanced Ethanol Council, Advanced Biofuels Association, Algae Biomass Organization, Biotechnology Industry Organization, Growth Energy, National Biodiesel Board and Renewable Fuels Association signed the letter.

When taking over the gavel at the Finance Committee earlier this year, Wyden said his priority would be extending the dozens of tax credits that expired at the end of last year, which include both the biofuels incentives and the wind industry’s production tax credit. The chairman is currently putting together a tax extenders bill.

The tax credits allow emerging technologies to compete with the existing oil industry, as well as allow the United States to compete with other countries, the biofuels organizations wrote.

“We are well aware of the financial constraints facing this country,” they said. “However, the United States’ global competitors are offering tax incentives for advanced biofuels and in fact are attracting construction of new facilities — and associated high skilled jobs.”