WASHINGTON, April 6, 2016 - Groups representing biodiesel
and advanced biofuels hope to get extension of their industries’ expiring tax
credits included in an FAA reauthorization bill. Democrats have been pushing
Republicans to include extensions of some tax credits that they were say were
mistakenly left out of the giant spending and tax bill in December.
The biofuel tax benefits, which includes a $1-a-gallon
credit for biodiesel, were extended only through this year by the bill, while
tax incentives for wind and solar power were continued for five years.
A letter
sent to key lawmakers Tuesday from biofuel industry groups said the expiring
tax incentives “are needed to stimulate capital investment and growth of clean
energy production and are vital to ongoing development of the advanced and
cellulosic biofuels industry.”
“We are asking that they receive consideration for
extension beyond 2016 early this year,” said Paul Winters of the Biotechnology
Innovation Organization. “If tax
credits are considered in the FAA bill, we’d like these to be included in the
discussion.”
In addition to the biodiesel subsidy, the expiring
measures include a $1.01-per-gallon credit for cellulosic fuels, a bonus
depreciation allowance for advanced biofuel plants, and a tax credit that
offsets the expense of installing biofuel pumps.
The chairman of the Senate Commerce, Science and
Transportation Committee, John Thune, R-S.D., said there is ongoing discussion
with Democrats about including some tax extenders in the FAA legislation’s tax
title. Thune said Republicans will need Democratic support to get the 60 votes
necessary to move the bill.
The measures that were left out of the December bill
include tax credits for fuel cells and geothermal power. “We have been talking
almost nonstop about this for weeks,” said Ron Wyden, ranking Democrat on the
Senate Finance Committee. “I think we’re making some good progress, and we’ll
have some more to say about it in not too long.”
However, inclusion of these credits is not a slam dunk.
More than 30 conservative groups, including Americans for Prosperity, Heritage
Action for America, the National Taxpayers Union and the American Energy
Alliance, oppose the inclusion of the tax credit extensions, calling them a
“distortion of the tax laws for special interests in the renewable energy
industry” and were wisely left out of last year’s package.
#30
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