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
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