Algae-based biofuels reap most reward of denied US tax bill
A bill has been passed by the US House of Representatives to stop a set automatic tax increases, which consequently benefits the internal biofuels industry.
The vote was passed by a vote of 257-167 and the bill, tagged the ‘fiscal cliff’ because many believed it would’ve sent the country back towards recession, is expected to be signed by President Barack Obama in the very near future.
The bill will extend for another two years the $1 (€0.70) per gallon tax credit for biodiesel and biomass-created fuel, with a small argi-biodiesel producer credit of $0.10 per gallon also included.
Producers dabbling in algae-based fuel will also be happy with this outcome as the medium now qualifies under an expanded definition of cellulosic biofuel production. Everyone under that umbrella term will continue to recoup 50% of their eligible capital costs in the first year for facilities up and running before the end of 2013.
Another bonus for all firms that produce cellulosic biofuel is that they will be able to continue claiming a $1.01 per gallon production tax credit for another 12 months.
‘We are thankful that Congress and the President support the growth of the biodiesel industry through the reinstatement of the credit and for recognizing biodiesel’s important role in energy and food security and job creation. This tax credit provides certainty for our petroleum distributor customers and, in turn, market stability for commercial biodiesel producers,’ says biodiesel producer Renewable Energy Group.