April 08, 2016
By:
Walter G. Wright
Category:
Arkansas Environmental, Energy, and Water Law
Arkansas Environmental, Energy, and Water Law
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Six biofuel trade associations sent an April 5th letter to Congressional leaders requesting an extension of various advanced biofuels tax incentives (i.e., tax credits).
The trade associations signing the letter include:
- Advanced Biofuels Business Council
- Algae Biomass Organization
- Biotechnology Innovation Organization
- growth energy
- National Biodiesel Board
- Renewable Fuels Association
The letter was sent to:
- Senate Majority Leader, Mitch McConnell
- Speaker of the United States House of Representatives, Paul Ryan
- Chairman – Senate Committee on Finance, Orrin G. Hatch
- Chairman – U.S. House of Representatives Committee on Ways and Means, Kevin Brady
- Senate Minority Leader, Harry Reid
- U.S. House of Representatives Minority Leader, Nancy Pelosi
- Ranking Member – Senate Finance Committee, Ron Wyden
- Ranking Member – U.S. House of Representatives Committee on Ways and Means, Sander Levin
The organizations noted that Congress had previously granted a two year extension for the:
- Second generation biofuel producer tax credit
- Special depreciation allowance for second generation biofuel plant property
- The biodiesel renewable diesel fuels credit
- The alternative fuel and alternative fuel mixture excise tax credit
The previously referenced tax credits are set to expire at the end of 2016. The letter further notes:
This short-term expiration of tax incentives is jeopardizing the long-term investment necessary for advanced biofuels. This creates uncertainty for investors and industry about the availability of these credits in the future. 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 request also asks that Congress not include a phase-out for the previously referenced renewable energy incentives.
Click here to download a copy of the letter.
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