Fiscal Cliff Deal Extends Biofuel Credits
By now the New Year’s fiscal cliff deal has received quite a bit of press. We have already discussed the significance of extending the Wind Production Tax Credit here earlier. Less well known is the inclusion of measures included in the deal to revive tax credits for advanced biofuels. It is well worth a moment to examine these to understand what impact these actions might have on both our future energy and food supply.
The American Taxpayer Relief Act of 2012 revived a number of tax credits that had expired at the end of 2011 and revised the definition of biofuels to include algae-based fuels.
According to the National Biodiesel Board, the restoration of the $1 per gallon credit for biodiesel producers which originated in 2005 and expired in 2011, could potentially add up to 30,000 new jobs this year. According to Anne Steckel, vice president of federal affairs at the National Biodiesel Board, "It's been a long year with a lot of missed opportunity and lost jobs in the biodiesel industry. But we're pleased that Congress has finally approved an extension so that we can get production back on track." According to research, had the incentive been in place this year, an additional 300 million gallons would have been produced, supporting more than 19,000 additional jobs. This is just another example of how the adage about having to spend money to make money applies to government as much as it does to business.
Bob Dineen, of the Renewable Fuels Association, who we spoke with back in October said, "The one year extension of the [$1.01 per gallon] cellulosic producer tax credit and accelerated depreciation provides some measure of certainty to ensure that 2013 will be a year of growth and milestones for the advanced ethanol industry."
Article continues at ENN affiliate, Triple Pundit
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