Biotech associations ask Congress to extend incentives

House and Senate leaders recently received a letter from six biofuel trade associations asking for an extension of advanced biofuel tax credits.

The groups jointly sending the letter were the Advanced Biofuels Business Council, Algae Biomass Organization, Biotechnology Innovation Organization, Growth Energy, National Biodiesel Board and Renewable Fuels Association.

Congress granted two-year extensions to the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit, and the Alternative Fuel Vehicle Refueling Property through the Protecting Americans from Tax Hikes Act of 2015.

Many other tax credits in the energy industry have already been extended through 2019.

“This short-term expiration of tax incentives is jeopardizing the long-term investment necessary for advanced biofuels,”  Growth Energy co-chair Tom Buis. “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.”