Biobased and Renewable Products News: Tax

February 16, 2018
Congress Approves U.S. Blender’s Credit For 2017
As explained in the notice issued by Neste, a member of the Biobased and Renewable Products Advocacy Group (BRAG®), with President Trump’s signing of the Bipartisan Budget Act of 2018 (H.R. 1892), the blenders tax credit was extended retroactively for 2017.  Qualified biofuel blenders are eligible for a tax credit of $1.00 per gallon of biodiesel or renewable diesel used in the blending process in 2017.  The blenders tax credit was one of several biofuel-related tax incentives that were extended retroactively.  The incentives, which also include tax credits for ... read more >
November 10, 2017
Senators Re-Introduce Bipartisan Bill To Extend MLP Benefits To Renewables
On October 25, 2017, bipartisan legislation aimed at leveling the playing field between renewable and fossil fuels was re-introduced in the Senate and House of Representatives.  Senator Chris Coons (D-DE), along with eight bipartisan co-sponsors, introduced the Master Limited Partnerships Parity Act (S. 2005) in the Senate.  Representative Ted Poe (R-TX), along with six co-sponsors, introduced similar legislation (H.R. 4118) in the House.  The legislation would allow investors in a range of clean energy projects, including renewable fuels, access to a corporate structure whose ... read more >
November 3, 2017
Senators Introduce Bipartisan Bill To Establish Renewable Chemicals Tax Credit
On October 18, 2017, Senator Debbie Stabenow (D-MI) introduced to the Senate the Renewable Chemicals Act of 2017 (S. 1980), which aims to establish a short-term tax credit for the production of renewable chemicals and for investment in renewable chemical production facilities.  If enacted, the legislation would allow taxpayers to claim a production credit equal to $0.15 per pound of biobased content of each renewable chemical produced.  In lieu of the production credit, taxpayers would be able to claim an investment credit equal to 30 percent of the basis of any eligible property ... read more >
September 22, 2017
New York Governor Signs Bill On Bioheating Fuel Requirements
The National Biodiesel Board (NBB) announced that on September 13, 2017, New York Governor Andrew Cuomo signed legislation that introduces bioheating fuel tax credits and bioheating fuel tax requirements to three New York counties.  The bill (S5422A) requires all home heating oil sold for use in Nassau, Suffolk, and Westchester counties on or after July 1, 2018, to contain at least five percent biodiesel (B5).  Assemblyman Steve Englebright and Senator Phil Boyle sponsored the bill, which received broad support from a range of industry and environmental advocates.  New York ... read more >
July 14, 2017
Bipartisan Renewable Chemicals Bill Introduced In The House
On June 29, 2017, Representatives Bill Pascrell (D-NJ), Ryan Costello (R-PA), Brian Fitzpatrick (R-PA), and Linda Sánchez (D-CA) introduced the Renewable Chemicals Act of 2017 to the House.  If enacted, the legislation would create a targeted, short-term tax credit for the production of qualifying renewable chemicals from biomass and for investments in renewable chemical production facilities.  The tax credit would be provided based on job creation, innovation, environmental benefits, commercial viability, and contribution to U.S. energy independence.  Numerous industry ... read more >
June 30, 2017
NBB Meets With Congress On Biodiesel Tax Incentive
On June 20, 2017, the National Biodiesel Board (NBB) announced that nearly 100 biodiesel advocates from across the country visited Capitol Hill to urge Congress to bring back the biodiesel tax incentive as proposed in both chambers of Congress.  Industry participants consisted of biodiesel producers, distributors, and feedstock suppliers from over 24 states.  According to Anne Steckel, the Vice President of Federal Affairs at NBB, the bipartisan biodiesel tax incentive should be reinstated since it helps support tens of thousands of jobs nationwide and the proposed reforms address ... read more >
May 12, 2017
Senate Finance Committee Introduces Clean Energy For America Act
On May 5, 2017, Senator Ron Wyden (D-OR) introduced to the Senate Finance Committee legislation focused on reducing carbon pollution over the next decade by incentivizing clean energy and promoting new technologies in the private sector.  The Clean Energy for America Act, which was co-sponsored by 21 Democratic Senators, provides a simplified set of long-term, performance-based energy tax incentives to promote clean energy production and storage.  The legislation would create a technology-neutral incentive for the domestic production of renewable transportation fuels based on the ... read more >
May 5, 2017
Bipartisan Bill Introduced To Reform The Biodiesel Tax Credit
On April 26, 2017, a bipartisan bill was introduced in the U.S. Senate to reform the biodiesel tax credit and extend the new policy for three years.  The American Renewable Fuel and Job Creation Act of 2017, which was sponsored by Senator Chuck Grassley (R-IA), Senator Maria Cantwell (D-WA), and 14 other senators, transfers the $1 gallon tax credit from the blenders to the producers of biofuels to ensure that it incentivizes domestic production.  The bill also provides an additional $0.10 gallon credit for small biodiesel producers in the United States.  According to a ... read more >
April 28, 2017
IRFA Concerned By Bill To Cap Iowa Biofuel Tax Credits
On April 13, 2017, the Iowa Renewable Fuels Association (IRFA) released a statement regarding the passage of a bill, HSB 187, by the Iowa House Appropriations Committee that would cut the value of the Iowa biofuels tax credits and complicate the mechanism for receiving the credit.  According to the bill, the value of the tax credits would be determined based on annual sales, and the amount of the credits would be capped on an annual, statewide basis.  The purpose of the biofuels tax credits was to incentivize consumers to purchase higher blends of ethanol and biodiesel, such as E15, ... read more >
April 21, 2017
IBB Announces Higher Blend Biofuels Dominate in Iowa
On April 4, 2017, the Iowa Biodiesel Board (IBB) announced that the Iowa Department of Revenue’s 2016 Retailers Fuel Gallons Annual Report demonstrated that more than half of Iowa’s fuel retailers carried biodiesel blends in 2016.  In 2016, 344.8 million gallons of on-road biodiesel blends were sold, which accounts for 54.7 percent of total on-road diesel fuel sales.  The report also showed that twice as many gallons of 11 - 20 percent biodiesel (B11-B20) were sold compared to lower blends.  IBB credits the growth in the use of higher biodiesel blends to ... read more >
February 17, 2017
Illinois State Senators Introduce Legislation To Boost Biobased Economy
On February 9, 2017, Illinois State Senators Andy Manar and Chapin Rose introduced legislation aimed at growing Illinois’ biobased economy by providing incentives under the Renewable Chemical Production Tax Credit Program Act.  The program would provide credit against taxes for eligible Illinois businesses that produce renewable chemicals within the state using biomass feedstock and other renewable sources.  The legislation defines a renewable chemical as a building block with a biobased content of at least 50 percent.  According to the legislation, eligible businesses ... read more >
January 13, 2017
Extension of New York’s Clean Heating Fuel Tax Credit
The New York State Clean Heating Fuel Tax Credit has been extended through 2020.  The personal income tax credit, which was initially authorized in 2006, is provided to eligible taxpayers for biodiesel purchases used for residential space and water heating.  For each percent of biodiesel blended with conventional home heating oil, a tax credit of $0.01/gallon is available up to a maximum of $0.20/gallon.  A partial credit will be calculated for buildings with a shared oil storage tank for residential and non-residential space that is based on the percentage of residential ... read more >
October 28, 2016
BIO Writes Open Letter To Congress Encouraging Multi-Year Extension Of Biofuel Incentives
On October 18, 2016, the Biotechnology Innovation Organization (BIO) sent a letter to Congressional Leadership, the Senate Finance Committee Chairs, and the House Ways and Means Committee Chairs calling for the extension of expiring renewable energy tax credits.  The Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, and the Alternative Fuel Vehicle Refueling Property are set to expire at the end of 2016, with BIO urging congress for multi-year extensions.  ... read more >
September 30, 2016
Bill To Extend Biodiesel Tax Credit Introduced In The House of Representatives
On September 12, 2016, the  Biodiesel and Renewable Diesel Incentive Extension Act of 2016  (H.R. 5994) was introduced to the House of Representatives and referred to the House Committee on Ways and Means. The bill was introduced by Representative Diane Black (R-TN), and would extend the $1 per gallon biodiesel and renewable diesel blenders credit, originally set to expire December 31, 2016, through  December 31, 2018. The blenders tax credit of $1 was created in 2005 for biodiesel or renewable diesel used in qualified mixtures.  The Advanced Biofuels Association ... read more >
September 16, 2016
Weekly Roundup of Other Biobased News
■ The Hill, "Energy Groups Push For Renewal Of Tax Credits" ■ Neste, "Neste and Ikea of Sweden Announce Partnership to Deliver Renewable, Bio-Based Plastics" ■ Packaging Europe, "Croda Offers CrodaTherm™ 21 for Temperature Controlled Packaging Applications" ■ The University of New Orleans, "UNO Computer Science Faculty Awarded More Than $500k for Vital Research" ■ Airforce Technology, "US Air Force to Produce Biofuels for US DoD ... read more >
September 2, 2016
Brazil Backtracks From Plan To Increase Ethanol Use Through Tax Breaks
On August 24, 2016, Brazil's government announced that it would not be extending a tax break on ethanol sales that is due to expire in December 2016. During the 2015 Paris Climate Accord, Brazil pledged to increase cane-based ethanol and biodiesel to nearly 18 percent of its total energy mix by 2030, requiring an increase in annual ethanol production from 30 billion liters in 2015/2016 to 50 billion liters in 2030. The loss of the ethanol tax break prevents biofuel from being cost competitive with gasoline, and will severely impede the ability of ethanol and biodiesel to make up a larger ... read more >
July 15, 2016
Hawaii Governor Signs Renewable Fuels Production Tax Credit
On July 6, 2016, Hawaii Governor David Ige signed SB 2652 Related to Taxation -- Locally Produced Renewable Energy. This bill establishes a five-year renewable fuels production tax credit. The tax credit will take effect in 2017 and will provide 20 cents per gallon of ethanol (or 76,000 British thermal units (Btu) of renewable fuel) with a cap of $3 million. The tax credit is open to companies producing at least 15 billion Btu of fuel from renewable feedstocks per year. Acceptable fuels include, but are not limited to, ethanol, hydrogen, biodiesel, biogas, renewable jet fuel, and other ... read more >
July 8, 2016
Weekly Roundup of Other Biobased News
■ BASF, "BASF Extends Its Portfolio Of Innovative Foam Solutions With ecovio® EA" ■ The Daily Nonpareil, "New Biomass Tax Incentive Seen As Catalyst For Economic Growth For Iowa" ■ USTDA, "USTDA Awards Two Power Africa Grants To Ghanaian Energy Developers" ■ Plastics Today, "Biesterfeld To Sell Nurel's Compostable Inzea Bioplastic In France" ■ SeeNews Renewables, "Abengoa Finds Buyers For Rotterdam Plant" ■ 3Ders, "Locknesters Unveils New And ... read more >
July 1, 2016
Bill Increasing Biogas Technologies Eligible For Energy Tax Credit Introduced To The House
On June 15, 2016, H.R. 5489, Agriculture Environmental Stewardship Act of 2016, was introduced to the House Ways and Means Committee on Science, Space, and Technology. The bill would add additional biogas applications to the list of technologies that qualify for the federal Section 45 energy investment tax credit, increasing acceptable biogas technologies from only biogas-based electricity projects to "qualified biogas property" defined as: property comprising a system which--   (i) uses anaerobic digesters, or other biological, chemical, thermal, or mechanical processes ... read more >
April 15, 2016
Six Biofuel Trade Associations Write Congress To Extend Advanced Biofuel Tax Credits
On April 5, 2016, the biofuel trade associations Advanced Biofuels Business Council, Algae Biomass Organization, Biotechnology Innovation Organization (BIO), Growth Energy, National Biodiesel Board, and Renewable Fuels Association sent a letter to House and Senate Leaders asking for a multiyear extension of advanced biofuel tax credits. The six organizations are specifically asking that the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, the Alternative Fuel and ... read more >
April 8, 2016
Iowa Renewable Chemical Production Tax Credit Signed Into Law
On April 6, 2016, Iowa Governor Terry Branstad signed Senate File 2300, creating a five cent tax credit, per pound of renewable chemicals produced from biomass feedstock between 2017 and 2026. Spokesman for Governor, Ben Hammes, stated, "Gov. Branstad believes this biochemical tax program will go even further to continue spurring economic growth all over Iowa, creating more high-quality jobs and attracting investments in renewable chemical manufacturing and advanced bio-refining." The bill passed the Iowa Senate on March 16, 2016, with a vote of 46-3, and the Iowa House on March 28, ... read more >
March 25, 2016
Iowa Senate Approves Renewable Chemical Production Tax Credit Legislation
On March 17, 2016, the Iowa State Senate voted 46-3 to approve Senate File 2300, a bill creating a production tax credit for renewable chemicals. The legislation was created to attract investment in renewable chemical manufacturing and biorefining to Iowa, and covers the production of higher value biochemicals from plant materials left over from biofuel production. The House Ways and Means Committee approved House File 2288, a companion bill, and sent the measure to the House floor. Senate File 2300 allows eligible businesses to claim a five cent tax credit per pound of renewable chemicals ... read more >
January 8, 2016
Omnibus Spending Bill Signed Into Law Includes Extension of Biofuel Tax Credit
On December 18, 2015, President Obama signed the omnibus spending bill, or Consolidated Appropriations Act, 2016, into law. The $1.1 trillion spending bill includes the retroactive extension of the $1 per gallon tax credit for biodiesel and renewable diesel blenders through December 31, 2016, while extending the second-generation biofuel production credit through January 1, 2017. In addition to extending tax credits for biofuels, the bill also funds a wide range of government programs through the end of 2016, including the Biomass Crop Assistance Program (BCAP), the Biorefinery, Renewable ... read more >
November 13, 2015
Senator Stabenow Introduces Legislation To Provide Tax Credits For Renewable Chemical Production
On November 10, 2015, Senator Stabenow (D-MI), along with Senators Coons (D-DE) and Franken (D-MN), introduced S. 2271, the Renewable Chemicals Act of 2015 to the Senate. If passed, the bill would amend the Internal Revenue Code of 1986 to create short-term tax credits for the production of renewable chemicals and for investments in renewable chemical production facilities. Producing eligible renewable chemicals from biomass feedstock would result in a tax credit of 15 cents per pound of renewable chemicals produced, or producers could take a 30 percent investment tax credit for qualified ... read more >
October 23, 2015
California Changes Tax Law To Allow For Biodiesel Tax Exemption
On October 4, 2015, California Governor Jerry Brown signed Assembly Bill No. 1032, an act to amend Sections 60501 and 60505.5 of the Revenue and Taxation code, relating to taxation, into law. The bill adds biodiesel to the list of fuels that are eligible for tax refunds when they are used for nontaxable purposes. Starting on January 1, 2016, the State Board of Equalization will provide refunds on the portion of nontaxable biodiesel removed from the terminal to those that can show that they have already paid the tax on the ... read more >
September 11, 2015
New Jersey Clarifies Definition Of Biofuels For Motor Fuel Tax Act Exemptions
On August 10, 2015, Governor Chris Christie (R-NJ) signed into law S.B. 2599/A-4121, an act concerning the definition of certain fuels and amending P.L.2010, c.22. The legislation clarifies New Jersey's Motor Fuel Tax Act exemptions to include biofuels made from recycled grease, plants, and animal fats. In addition, biobased liquid fuel and biodiesel fuel are now defined as renewable biomass. The clarification of the biofuel tax exemption is intended to encourage biodiesel businesses to invest in New Jersey now that they can be certain that they qualify for tax exemptions. The bipartisan ... read more >
September 4, 2015
IRS Releases Guidance On Income Tax Treatment Of 2014 Biodiesel Mixture Credits
On August 18, 2015, the Internal Revenue Service (IRS) released a notice containing tax code information for 2014 biodiesel tax credits. The focus of the notice is the treatment of credits under Internal Revenue Code Section 6426(c) and (d) that allow a biodiesel blender to claim a credit against tax liability. Generally, the tax liability is in the form of excise taxes imposed by Sections 4041 and 4081 and is reported on Form 720, Quarterly Federal Excise Tax Return, and the Section 6426 credits are claimed on Schedule C (Form 720), Claims. The IRS notice informs claimants about the federal ... read more >
August 7, 2015
Tax Credits For Renewable Chemical Production Introduced In The House
On July 29, 2015, a bill to amend the Internal Revenue Code of 1986 to provide credits for the production of renewable chemicals and investments in renewable chemical production facilities, and for other purposes (H.R. 3390) was introduced in the House. The bill would expand production and investment tax credits that are currently available to renewable energy producers to apply also to renewable chemical manufacturers. The program allows manufactures to choose either: (1) a 15 cents per pound production credit for eligible renewable chemicals; or (2) a 30 percent investment tax credit for ... read more >
July 31, 2015
Senate Passes Bill Extending Energy Tax Credits
On July 21, 2015, the Senate Finance Committee voted to pass a $96 billion package of tax extenders. The tax credits in the package include Individual Tax Extenders, Business Tax Extenders, and $16.4 billion in Energy Tax Extenders. The wind production tax credit, a $1.01 per-gallon production credit for second generation biofuels, energy efficiency credits, and a renewable electricity production credit that includes biomass and municipal solid waste, were all included in the tax credit renewals. Senator Charles Grassley (R-IA) added an amendment to the bill to convert three $1.00 per-gallon ... read more >
July 2, 2015
Master Limited Partnership Parity Act Reintroduced To House And Senate
On June 24, 2015, the Master Limited Partnership Parity Act (S. 1656) was reintroduced in the House and the Senate. The legislation would provide investors in renewable energy projects with tax breaks that are currently available to investors in fossil fuel-based energy projects. A master limited partnership is taxed as a partnership, but ownership interests are traded like corporate stock, thus avoiding the double taxation that can occur with traditional corporate structures when both profits and dividends are taxed. "Renewable energy technologies have made tremendous progress in the ... read more >
June 25, 2015
Australia Reaches Agreement To Tax Biodiesel And Ethanol
On June 17, 2015, the Australian government made a bipartisan agreement to tax Australian-produced biodiesel and ethanol. Cleaner fuel grants for renewable and biobased diesel fuels will end by July 1, 2015, as will the Ethanol production grant. An excise rate on biodiesel will be phased in starting in 2015-2016 at zero percent, and will increase annually, eventually reaching 50 percent of the diesel excise rate in 2030-2031. The Biofuels Association of Australia approved of the agreement, saying it will "allow the industry to focus on the longer term and provides a sustainable footing ... read more >
May 1, 2015
Iowa Bill Creates Tax Credit For The Production Of Renewable Chemicals
Iowa Senate bill SF 350: the Renewable Chemical Production Tax Credit Program was introduced in March 2015, and is awaiting review in the Ways & Means Committee. If passed, the legislation will allow producers of renewable chemicals in Iowa to claim a five cent per pound tax credit, with a maximum credit of $1 million for businesses operating in Iowa for five years or less, and a maximum credit of $500,000 for businesses operating in Iowa for more than five years. Chemicals must have at least a 50 percent biobased content to qualify as renewable chemicals under the bill, and must also be ... read more >
February 26, 2015
Congressional Briefing On Renewable Chemicals Tax Credit
On February 25, 2014, Senator Chuck Grassley (R-IA) hosted a briefing for legislators and their staff regarding the need for tax credits for U.S. producers of renewable or biobased chemicals. The Biotechnology Industry Organization (BIO) urged attendees to pass the Qualifying Renewable Chemical Production Tax Credit Act, which had been previously introduced in past Congresses but was not enacted. Attendees at the briefing also considered other programs impacting renewable chemicals, including the U.S. Department of Agriculture's (USDA) BioPreferred federal procurement program and the U.S. ... read more >
December 18, 2014
Senate Passes Tax Extender Legislation
On December 16, 2014, the Senate followed the House of Representatives and passed tax extender legislation that is expected to be signed by the President.  The final package that passed would retroactively extend incentives that expired on December 31, 2013, through the end of 2014.  It does not extend the incentives through the end of 2015, as Senate Finance Committee Chair Ron Wyden (D-OR) and other leaders would have liked.  The final tax extender package includes important incentives for the biofuels industry, including the dollar-per-gallon biodiesel tax credit, as well ... read more >
December 11, 2014
House Of Representatives Extends Bioenergy Tax Credits For 2014
 On December 1, 2014, the U.S. House of Representatives passed H.R. 5771, the Tax Increase Prevention Act of 2014, more commonly referred to as the tax extender bill.  This bill extends through 2014 the dollar-per-gallon biodiesel tax credit, as well as the biofuel production tax credit for cellulosic and algae-based biofuels and the special allowance for second generation biofuel plant property.  While the Chair of the Senate Committee on Finance is reportedly still working to pass a tax extender bill that would extend these expiring incentives beyond 2014, especially given ... read more >
October 24, 2014
Iowa Economic Development Agency To Push For Incentives For Renewable Chemicals And Products
During the next state legislative session, which begins in January, Iowa's Economic Development Agency will reportedly seek approximately $20 million in new incentives for companies that use chemicals derived from ethanol production to produce biobased products. The Agency reportedly believes sufficient incentives exist to promote biofuel development in Iowa. This new incentive would be needed to help further the biobased economy in the State. More information on this effort is available in The Des Moines Register news story "Biochem Tax Credit Pitched By Economic ... read more >
October 3, 2014
Bridge To A Clean Energy Future Act Of 2014 Introduced In The U.S. House Of Representatives
On September 19, 2014, Representatives Earl Blumenauer (D-OR) and Dave Loebsack (D-IA) introduced the Bridge to a Clean Energy Future Act of 2014 (H.R. 5559), which was referred to the House Committee on Ways and Means. The bill would extend clean energy tax incentives, including those benefiting the biofuel and bioenergy industries. Among the tax credits being extended are the second generation biofuel producer credit, the $1.00 per gallon tax credit for biodiesel and renewable diesel, and the Section 45 renewable energy production tax credit. More information is available ... read more >
September 26, 2014
House Democrats Introduce Energy Tax Extender Bill
On September 18, 2014, Representatives Earl Blumenauer (D-OR) and Dave Loebsack (D-IA), along with 16 other Members of Congress, introduced H.R. 5559, the Bridge to a Clean Energy Future Act of 2014. A copy of Representative Blumenauer's statement on the bill is available online. H.R. 5559 is the House counterpart to S. 2260, the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act. The package of tax extenders was approved by the Senate Finance Committee in April and stalled on the Senate Floor since May. A copy of H.R. 5559 is not yet publicly available. Reportedly ... read more >
May 23, 2014
Senate Fails To Pass Measure Enabling It To Consider Important Biofuels Tax Extenders
On May 15, 2014, the U.S. Senate failed to pass a procedural measure that would have allowed for that body to consider and vote on S. 2260, the "Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act," the package of tax extenders approved by the Senate Finance Committee in April. The EXPIRE Act includes extensions through December 31, 2015 (and retroactive to January 1, 2014), of the following key biofuels incentives that have expired: the Alternative Fuel Refueling Property Credit; the Second Generation Biofuel Producer Tax Credit; the Special Depreciation Allowance ... read more >
May 23, 2014
Iowa Governor Signs Law Extending And Enhancing Biofuels Incentives
On May 21, 2014, Iowa Governor Terry Branstad (R) signed into law Senate Bill 2344, legislation to help promote the biofuels industry in the State. A copy of the legislation is available online. It extends the biodiesel production tax credit that was scheduled to expire at the end of 2014, enhances Iowa's E-15 retailer tax credit, and adds biobutanol as a renewable fuel option. This law reinforces Iowa's ongoing support for the biofuels ... read more >
May 9, 2014
Senate May Soon Consider Tax Extender Bill
The U.S. Senate is expected to consider its version of tax extender legislation, S. 2260, the "Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act," as early as next week. On April 3, 2014, the Senate Finance Committee approved its version of the EXPIRE Act. The EXPIRE Act includes extensions through December 31, 2015 (and retroactive to January 1, 2014), of the following key biofuels incentives that have expired: the Alternative Fuel Refueling Property Credit; the Second Generation Biofuel Producer Tax Credit; the Special Depreciation Allowance for Second ... read more >
April 11, 2014
House Ways And Means Hearing On Tax Extenders
On April 8, 2014, House Committee on Ways and Means Chair Dave Camp (R-MI) held a hearing on the "Benefits of Permanent Tax Policy for America's Job Creators." The hearing focused on the expiring business tax provisions that are made permanent or extended under Camp's recently released discussion draft of the "Tax Reform Act of 2014" (TRA). Unlike his Senate counterpart -- Senate Committee on Finance Chair Ron Wyden (D-OR) -- Camp is not very supportive of passing a tax extender package to extend retroactively the approximately 50 incentives that expired at the ... read more >
April 4, 2014
Biofuels Tax Extenders
On April 3, 2014, the Senate Committee on Finance marked up its version of a tax extenders package, the "Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act." The EXPIRE Act includes extensions through December 31, 2015 (and retroactive to January 1, 2014) of the following key biofuels incentives that have expired: the Alternative Fuel Refueling Property Credit; the Second Generation Biofuel Producer Tax Credit; the Special Depreciation Allowance for Second Generation Biofuel Plant Property; the Biodiesel and Renewable Diesel Fuels Credit; and the Alternative Fuel ... read more >
March 28, 2014
Biofuels Industry Urges Retroactive Extension Of Key Incentives
On March 24, 2014, seven leading biofuel trade associations sent a letter to Senate Committee on Finance Chair Ron Wyden (D-OR) and Ranking Member Orrin Hatch (R-UT) -- as the Committee works to develop a tax extenders bill -- urging the retroactive extension of the following biofuel incentives, which expired on December 31, 2013: the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, and the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit. A copy of ... read more >
February 28, 2014
House Ways And Means Chair Expected To Introduce Tax Reform Proposal
U.S. House Ways and Means Committee Chair Dave Camp (R-MI) and U.S. Senate Finance Committee Chair Ron Wyden (D-OR) are expected to take different approaches to tax reform this year. Camp has stated publicly his intent to focus solely on comprehensive tax reform, which he and his staff have been working on for over a year. He is expected to release a discussion draft of comprehensive tax reform legislation in the coming months. Meanwhile, newly designated Chair Wyden has publicly expressed support for the idea of comprehensive tax reform, but is expected to focus his near term efforts ... read more >
February 21, 2014
New Bill To Extend And Reform Biodiesel Tax Incentive
On February 13, 2014, Senators Maria Cantwell (D-WA) and Chuck Grassley (R-IA) introduced S. 2021, a bill to extend and reform the $1 per-gallon biodiesel tax credit that expired on December 31, 2013. The bill would extend this credit for three years through 2017. It would provide a $1 per-gallon tax credit for the production of biodiesel, renewable diesel, and aviation jet fuel that complies with fuel standards and the Clean Air Act. The bill would modify the definition of biodiesel to encourage production from any biomass-based feedstock, or recycled oils and fats. It would increase the ... read more >
January 10, 2014
Fate Of Biofuel Tax Extenders Uncertain
Several incentives designed to encourage renewable energy development and production, including the $1 per gallon tax credit for biodiesel producers and the $1.01 per gallon credit for cellulosic ethanol production, expired on December 31, 2013. Should extenders be considered, it is likely these two credits will be extended and likely retroactively. Although given election year politics and ongoing budget battles, if and when this happens is tougher to predict. In the short term, one legislative vehicle could be legislation to increase the debt limit expected to pass later this winter or ... read more >
January 10, 2014
Senate Finance Chair Nominated To Be Next Ambassador To China
On December 18, 2013, President Obama announced that he will nominate Senator Max Baucus (D-MT) to be the next Ambassador to China. The nomination is expected to pass quickly and without much opposition. Senator Baucus serves as the Chair of the Senate Committee on Finance, the tax writing Committee. When he leaves the Senate, current Senate Committee on Energy and Natural Resources Chair Ron Wyden (D-OR) is expected to assume the chairmanship. These moves will impact the fate of incentives for the biofuels and renewable chemicals and products industries, including whether and when the ... read more >
December 23, 2013
Congressional Efforts To Extend Biofuels Incentives
On December 12, 2013, Representative Scott Peters (D-CA), Chair of the House Algae Caucus, introduced H.R. 3758, a bill to extend the $1.01/gallon second generation biofuel producer credit and the special allowance for second generation biofuel plant property. These incentives are among several currently set to expire at the end of the year. Members of the House and Senate have sent letters to the Chairs and Ranking Members of their respective tax writing Committees -- the House Ways and Means Committee and the Senate Finance Committee -- urging the extension of ten clean energy incentives ... read more >
December 23, 2013
Senate Finance Chair Releases Draft Energy Incentive Bill And Requests Comment By January 31, 2014
On December 18, 2013, Senate Finance Committee Chair Max Baucus (D-MT) unveiled a detailed summary of staff discussion draft legislation designed to reform current energy incentives under the U.S. Tax Code. In sum, the proposal would consolidate nearly all 42 existing energy incentives under two categories of incentives: technology-neutral tax incentives for domestic production of (1) clean electricity and (2) clean fuels. The detailed summary of the discussion draft acknowledges and requests comment on the fact that the energy tax reform proposal would not provide incentives for other ... read more >
December 13, 2013
Industry Urges Extension Of Key Biofuels Incentives
On December 9, 2013, 60 companies sent a letter to the leaders of the U.S. House Ways and Means Committee and U.S. Senate Committee on Finance urging them to extend various biofuels incentives. These incentives, including the $1.00 per gallon credit for biodiesel, are scheduled to expire at the end of the year. While industry was able to secure extension of these incentives last year in legislation to prevent the "fiscal cliff," the prognosis for similar success is diminished in light of the current comprehensive tax reform effort. The companies are against any proposal that would ... read more >
November 22, 2013
Joint Tax Scores MLP Legislation
This week, the non-partisan Joint Committee on Taxation released its score of S. 795, the Master Limited Partnerships Parity Act, a bi-partisan bill introduced by Senator Chris Coons (D-DE) earlier this year. The Committee estimated that the bill would cost $1.3 billion over ten years. Reportedly, Senator Coons welcomed the score and has committed to trying to find an offset or spending cut to pay for it. The Chair of the Senate Finance Committee's Subcommittee on Energy, Natural Resources and Infrastructure, Senator Debbie Stabenow (D-MI), has publicly stated her support for the ... read more >
November 15, 2013
Environmental Groups Urge Extension Of Renewable Energy Credits
On November 12, 2013, 17 "green groups," including Greenpeace, the Sierra Club, and the League of Conservation Voters, sent a letter to the leaders of the U.S. Senate Committee on Finance urging the extension of several tax incentives designed to promote investment in the development of clean energy. For instance, the letter urges the extension of the 48C Advanced Energy Manufacturing Tax Credit, which provides an investment tax credit of up to 30 percent of qualified investment in a qualifying advanced energy project, which is defined to be a project that establishes, expands, or ... read more >
November 8, 2013
Biodiesel Credits Determined Not To Be Gross Income
The Internal Revenue Service (IRS) has released an advice memorandum from the agency's Office of Chief Counsel determining that "y electing the § 6426(c) excise tax credit [biodiesel mixture credit] and/or the § 6427(e) excise tax payment instead of the § 40A income tax credit, a blender is not required by § 87 or by § 61 to include in its gross income the amount of the § 6426(c) excise tax credits and/or the § 6427(e) payments that it claims." A copy of the memorandum is available ... read more >

 
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