Groups: Extend Biofuel Tax Credits

STREATOR, Ill. (DTN) -- A group of biofuel trade organizations on Friday, July 17, sent a letter to Senate Finance Committee Chairman Orrin Hatch, R-Utah, and Ranking Member Ron Wyden, D-Ore., encouraging extension of advanced biofuel tax incentives, including the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, and the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit.

The trade groups signing the letter included the Advanced Ethanol Council, Advanced Biofuels Association, Algae Biomass Organization, Biotechnology Industry Organization, Growth Energy, National Biodiesel Board, and Renewable Fuels Association.

"The advanced biofuels industry is at a critical stage in development," the authors wrote.

Last year, several new, commercial-scale advanced biofuel facilities began operations, and, despite a difficult financial market, the industry continues to make progress on dozens of additional projects, they continued.

"Advanced biofuel tax credits have moved these projects to commercial production by reducing the cost of production and by developing first-of-kind technologies to deploy the most innovative fuel in the world," the letter stated.

Global competitors of the United States are offering tax incentives for advanced biofuels and are attracting construction of new facilities, they noted.

"We encourage Congress to continue the development of these homegrown technologies and urge extension of these credits," they wrote.

"In the interest of energy security, job creation, global competitiveness, and forward-looking policy, we urge you to move quickly to extend expired advanced biofuel tax provisions for multiple years retroactive to Jan. 1, 2015."

(BM/AG)