Sen. Eyes Biofuel Tax Credit Extension

STREATOR, Ill. (DTN) -- The U.S. Senate Finance Committee will consider reinstating tax incentives for two years for biodiesel and other advanced biofuels in a markup scheduled Thursday, April 3.

The committee, chaired by Ron Wyden, D-Ore., released a description Tuesday that includes four biofuel-related extensions of credits that expired Dec. 31, 2013, that would be retroactive to the start of this year and extended for two years.

The biofuels incentives, all of which would be extended to Dec. 31, 2015, include:

-- The incentives for biodiesel and renewable diesel, which provide a $1 per gallon tax credit.

-- The alternative fuel and alternative fuel mixtures incentive, which provides 2 cents per gallon for alternative fuels, and includes compressed or liquefied natural gas, liquefied hydrogen and liquid fuel derived from coal through the Fischer-Tropsch process.

-- The second-generation biofuel producer credit, which allows a $1.01 per gallon credit for qualified second-generation biofuel production, including cellulosic biofuel.

The Senate will also consider extending the special depreciation allowance for second-generation biofuel plant property, equal to 50% of qualified second-generation biofuel plant property. The credit applies to property placed in service after Dec. 31, 2013, and extends the incentive to Jan. 1, 2016.

"These credits are vital to the ongoing development of the advance biofuels industry, and our members appreciate the certainty of a two-year extension," Michael McAdams, president of the Advanced Biofuels Association, stated in an emailed statement to media Tuesday.

"In conjunction with a robust Renewable Fuel Standard, this legislation will help keep people in their jobs and clean gallons of renewable fuel flowing," McAdams added.

He said manufacturers of advanced and cellulosic biofuels "urge swift passage by both the House and Senate to send markets a strong signal of continued Congressional support for our emerging industry."

(BM/AG)

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