Biofuels Industry Asks for Tax Credit Extension

The industry wants four tax credits to receive multiyear extensions.

March 26, 2014

WASHINGTON, D.C. – The biofuels industry has requested a multiyear extension to four tax credits, as well as make those credits retroactive to January 1, 2014, E&E reports. Those tax credits expired on December 31, 2013.

The industry asked Sens. Ron Wyden (D-OR) and the chair of the Senate Finance Committee, and Orrin Hatch (R-UT), ranking member, for the extension. The credits encompass a $1.01 per gallon second-generation biofuel producer as well as a $1.00 per gallon biodiesel fuel 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,” read part of the letter from the industry. Groups that signed the letter include the Advanced Biofuels Association, Advanced Ethanol Council, Algae Biomass Organization, Biotechnology Industry Organization, Growth Energy, National Biodiesel Board and Renewable Fuels Association.

Wyden indicated that extending expired tax credits would be a priority when he became chairman of the Senate Finance Committee this year. Those tax credits included ones relating to biofuels and the wind industry. Wyden is working on a bill that extends those tax credits.

“We are well aware of the financial constraints facing this country,” the group’s letter 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.”

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