Biofuel trade groups call for multiyear tax credit extensions

Six biofuel trade associations have sent a letter to leaders of the US House of Representatives and US Senate to ask for a multiyear extension of advanced biofuel tax credits.

In December, the US Congress granted a two-year extension to the second generation biofuel producer tax credit, the special depreciation allowance for second generation biofuel plant property, the biodiesel and renewable diesel fuel credit, the alternative fuel and alternative fuel mixture excise tax credit, and the alternative fuel vehicle refueling property tax credit. Those credits are currently scheduled to expire at the end of the current year.

Within the letter, the trade associations stress the “short-tern expiration of tax incentives is jeopradising the long-term investment necessary for advanced biofuels. This creates uncertainty for investors and industry about the availability of these credits in the future”.

The letter goes on to state: “As leaders in a critical innovation sector in the United States, we are well aware of the financial constraints facing this country. However, as Congress works on developing energy tax extenders legislation, we urge you to ensure that advanced biofuels are part of the package.

“Extending some 2016 expiring energy tax provisions and not others creates a piecemeal approach and investment uncertainty across the energy sector and distorts the playing field for biofuel producers.”

The groups also urge Congress to move quickly, extending the biofuel  tax credits ahead of the expiration date to avoid creating any uncertainty for investors and companies trying to raise capital.

The letter is signed by the Advanced Biofuels Business Council, the Algae Biomass Association, the Biotechnology Innovation Organization, Growth Energy, the National Biodiesel Board and the Renewable Fuels Association.