The effort is similar to an earlier letter sent to Congress by proponents of the wind industry who are pressing for an extension of the production tax credit that for years has helped make the US one of the most active wind energy regions in the world.
The biomass officials are seeking a five year extension of the Cellulosic Biofuels Producer Tax Credit (PTC) and the Accelerated Depreciation Allowance for Cellulosic Biofuel Plant Property.
In a letter addressed to the Chairs and Ranking Members of the House Ways and Means and Senate Finance Committees, they said the tax provisions "are critical to our efforts to attract capital given that these types of incentives are offered to other US energy sectors.
"It will be much more difficult for our companies to develop projects in the United States if current depreciation allowances expire and taxes on our industry increase in 2013," they said.
A copy of the letter can be accessed here.
The Advanced Ethanol Council (AEC), the Biotechnology Industry Organization (BIO), and the Advanced Biofuels Association (ABFA) echoed the statements made in the letter.
“If the United States expects to lead the global effort to develop innovative alternatives to increasingly expensive petroleum-derived fuels, it cannot afford to allow the very policies that support emerging advanced biofuel industries to expire,” said AEC Executive Director Brooke Coleman. “Extending these cost-effective tax provisions for a sensible length of time will level-set the marketplace relative to government support for fossil fuels and accelerate the commercial production of advanced biofuels from a wide variety of biomass and waste resources.”
“Producing affordable domestic alternatives to all products that come from foreign oil is vital to renewed economic growth and energy security. Companies that are innovating need stable policy to bring commercial-scale alternatives to the market,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section.
Michael McAdams, President of the ABFA added, “At a time of record high gasoline prices the American public and their government need to explore every potential option to bring more renewable transportation fuels to the market in order to lower the overall cost to consumers. Our members believe that supporting the existing cellulosic biofuels tax credit is a good value for every taxpayer and customer who has to pull up to the pump in the United States.”
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