Renewable fuels group urges Congress to extend 3 tax credits
Source: Marc Heller, E&E reporter • Posted: Friday, October 21, 2016
The three incentives — the second-generation biofuel producer tax credit, the special depreciation allowance for second-generation biofuel plant property and the alternative-fuel vehicle refueling property credit — should be extended for more than a year to help the industry grow, the Renewable Fuels Association said in a letter to congressional leaders.
“The U.S. biofuel industry is at a critical stage in its development,” wrote RFA President Bob Dinneen.
Uncertain policies, including tax policies that have to be renewed every year or two, undermine the industry by discouraging development, Dinneen said. Congress has taken that approach recently, unable to advance a broader rewrite of the tax code that many people in the energy industry say is needed.
In addition, Dinneen said, as many as half of the fuel service stations in the United States are small, family-owned operations that may have a hard time investing in equipment geared to alternative fuel, a situation remedied by federal tax benefits for such investments.
The expiring tax incentives are part of a broad package of so-called tax extenders Congress is likely to take up before the end of the year.