30% investment tax credit encouraged to give industry leg-up
In the US, members of the tax-writing committees Senate Finance and House Ways and Means have been urged to create a 30% investment tax credit for upcoming commercial biorefinery builds.
The leaders of the House and Senate tax-writing board received a letter from 32 biofuels companies and trade groups which believe that this investment tax credit is crucial to boost the biofuels industry, after the sector has suffered financially due to the economic downturn in previous years.
The industry, which is in desperate need of private funding to develop and construct profitable projects, faces federal mandates for renewable fuels starting this year.
The letter said, ‘The advanced biofuel industry has been diligently working on the many challenges it must overcome before it is capable of producing substantial commercial-scale volumes of transportation fuels. In the near term, however, the seemingly intractable hurdle of confronting the advanced biofuels industry is access to capital to support the timely development of commercial-scale projects.’
Currently biofuels producers are entitled to $1.01 (€0.74) per gallon production tax credit for second generation biofuel. However, as there is no commercial production, companies are not taking advantage of this entitlement.
The leaders of the House and Senate tax-writing board received a letter from 32 biofuels companies and trade groups which believe that this investment tax credit is crucial to boost the biofuels industry, after the sector has suffered financially due to the economic downturn in previous years.
The industry, which is in desperate need of private funding to develop and construct profitable projects, faces federal mandates for renewable fuels starting this year.
The letter said, ‘The advanced biofuel industry has been diligently working on the many challenges it must overcome before it is capable of producing substantial commercial-scale volumes of transportation fuels. In the near term, however, the seemingly intractable hurdle of confronting the advanced biofuels industry is access to capital to support the timely development of commercial-scale projects.’
Currently biofuels producers are entitled to $1.01 (€0.74) per gallon production tax credit for second generation biofuel. However, as there is no commercial production, companies are not taking advantage of this entitlement.
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