Biofuel groups push for renewal of tax credits

A coalition of biofuel advocacy organizations sent a letter Monday to the top tax lawmakers in the Senate urging them to renew expired tax credits that helped their industry.

The credits, which incentivized advanced biofuel production and infrastructure, expired Dec. 31, along with a slew of popular tax breaks.

“Advanced biofuel tax credits have allowed the biofuels industry to make great strides in reducing the cost of production and developing first-of-kind technologies to deploy the most innovative fuel in the world,” the groups said in their letter to Senate Finance Committee Chairman Sen. Ron Wyden (D-Ore.) and Ranking Member Orrin Hatch (R-Utah).

{mosads}“If Congress wants American companies to continue developing these homegrown technologies in the United States, it must extend these credits,” they said.

Advanced biofuels, also known as second-generation biofuels, are made from woody crops or other biomass from which it is difficult to extract the fuel.

Representatives of the Advanced Ethanol Council, the Advanced Biofuels Association, the Algae Biomass Organization, the Biotechnology Industry Organization, Growth Energy, the National Biodiesel Board and the Renewable Fuels Association signed the letter.

The groups asked that the tax breaks be renewed retroactively so producers could get credit for production and infrastructure as of Jan. 1.

Both Wyden and House Ways and Means Committee Chairman Rep. Dave Camp (R-Mich.) plan to bring up proposals to extend expired tax breaks in April, they’ve said.