Posted on April 18, 2022 by Lynn L BergesonBy Lynn L. Bergeson and Ligia Duarte Botelho, M.A.
On March 9, 2022, U.S. Senators Joni Ernst (R-IA) and Amy Klobuchar (D-MN) introduced the Home Front Energy Independence Act that would ban Russian oil and replace it with the use of biofuels produced in the United States. This bill combines parts of past bills that would make ethanol 15 (E15) available year-round, establish an E15 and Biodiesel Tax Credit, direct the U.S. Environmental Protection Agency (EPA) to finalize the E15 labeling rule, and provide biofuel infrastructure and compatibility with retailers:
Several Senators co-sponsored the bill, including Tammy Baldwin (D-WI), Tammy Duckworth (D-IL), Deb Fischer (R-NE), Chuck Grassley (R-IA), and Roger Marshall (R-KS0. Senator Klobuchar stated that this bill will help to hold Vladmir Putin accountable for Russia’s invasion of Ukraine, while also investing in affordable, readily available biofuels produce in the United States.
Posted on January 12, 2022 by Lynn L BergesonBy Lynn L. Bergeson
On December 29, 2021, the Kentucky Commissioner of Agriculture, Dr. Ryan Quarles, announced that eligible Kentucky companies can now apply to the state’s Renewable Chemical Production Program. This program provides tax credits for capital investment, job creation, and the production of more than 30 chemicals derived from biomass feedstocks. These chemicals are limited to building block chemicals with a biobased content percentage of at least 50 percent, except for chemicals sold or used for the production of food, feed, or fuel. A complete list of chemicals and company eligibility requirements can be found at https://apps.legislature.ky.gov/law/kar/302/004/010.pdf. To learn more about Kentucky’s Renewable Chemical Production Program or to request an application, contact Tim Hughes at .(JavaScript must be enabled to view this email address). Completed applications, along with a $500 compliance fee, are due by January 15, 2022.
Posted on March 05, 2021 by Lynn L BergesonBy Lynn L. Bergeson and Ligia Duarte Botelho, M.A.
On March 1, 2021, U.S. Senators Joe Manchin (D-WV) and Debbie Stabenow (D-MI) announced the American Jobs in Energy Manufacturing Act of 2021 (Act), which would incentivize domestic manufacturing of energy technologies by providing tax credits for domestic manufacturers in rural areas. The Act encourages the transition to cleaner energy by driving reinvestment into communities that have been most impacted by economic downturn. “This bill will help revitalize these areas by making smart changes to the 48C Advanced Energy Manufacturing Tax Credit to drive investment in these communities, strengthen domestic supply chains, create additional clean energy manufacturing jobs, and aid the nation’s recovery,” stated Senator Manchin. Senator Stabenow urged the Senate to pass the Act, stating that the transition to a clean energy economy would significantly contribute to the fight against climate change. The Act has been endorsed by several non-profit organizations and industry stakeholders.
Significant measures would be taken under the Act, including:
- Investment of $8 billion in American manufacturing and industry to serve as a tool to expand or build new facilities that make or recycle energy-related products; and
- Provision of assistance to applicants through new guidelines and technical assistance that promote reinvestment and job creation.
The full bill can be accessed here.
Posted on November 06, 2020 by Lynn L BergesonBy Lynn L. Bergeson
On October 8, 2020, the European Commission (EC), under the European Union (EU) State aid rules, approved the prolongation of tax exemptions for biofuels in Sweden. Having exemptions for liquid biofuels from energy and carbon emissions taxation since 2002, Sweden’s scheme aims to increase biofuels use while reducing the fossil fuels use in transport. With EC’s decision, the tax exemption has now been prolonged by one year from January 1, 2021, until December 31, 2021. EC stated that the tax exemptions are not only appropriate, but necessary for stimulating the production and consumption of domestic and imported biofuels in Sweden. In addition, EC found that the Swedish scheme will contribute to the delivery of the EU’s goals in the Paris Agreement and EU’s move towards its 2030 renewables and carbon emissions targets.
Posted on December 13, 2019 by Lynn L BergesonBy Lynn L. Bergeson
On December 9, 2019, 22 Senate Democrats released a letter supporting the expansion of green energy tax credits. This letter was drafted in response to the Growing Renewable Energy and Efficiency Now (GREEN) Act discussion draft that was circulated in the U.S. House of Representatives on November 19, 2019. The Senators agree with the priorities of the GREEN Act and pledge to similarly prioritize and include:
- Offshore Wind Investment Tax Credit,
- Storage Investment Tax Credit,
- Solar and Clean Energy Investment Tax Credit Extension,
- Energy Efficiency Tax Credit,
- Clean Vehicles, and
- Onshore Wind.
Posted on June 28, 2019 by Lynn L BergesonBy Lynn L. Bergeson
On June 18, 2019, Representative Mike Thompson, (D-CA), Chair of the House Ways and Means Subcommittee on Select Revenue Measures, introduced the Taxpayer Certainty and Disaster Tax Relief Act of 2019. The bill includes:
- An extension of the $1-per-gallon tax credit for biodiesel and biodiesel mixtures;
- An extension of the small argi-biodiesel producer credit of 10 cents per gallon through 2020;
- An extension of the second generation biofuel producer credit through 2020;
- A $1.01-per-gallon nonrefundable income tax credit for second generation biofuel sold at retail into the fuel tank of a buyer’s vehicle, or second generation biofuel mixed with gasoline or a special fuel and sold or used as fuel (previously known as the cellulosic biofuel producer credit);
- An extension of the alternative fuel refueling property credit through 2020;
- A credit for the installation of alternative fuel vehicle refueling property, which includes property that dispenses alternative fuels, including ethanol, biodiesel, natural gas, hydrogen, and electricity;
- An extension of the special allowance for second generation biofuel plant property through 2020 and an additional first-year 50 percent bonus depreciation for cellulosic biofuel facilities; and
- The Section 45 tax credit for renewable energy would be extended through 2020, or one year in the case of wind facilities.
By extending a number of provisions that expired in 2017 and 2018, and preemptively extending provisions set to expire in 2019, Representative Thompson aims to reverse the trend of allowing important tax provisions to expire before being renewed, and rather consistently extend them on a forward-looking basis to provide greater certainty for taxpayers.
Posted on June 14, 2019 by Lynn L BergesonBy Lynn L. Bergeson
On June 3, 2019, 19 members of Congress submitted a letter to U.S. Speaker of the House, Nancy Pelosi (D-CA), and Chair of the House Committee on Ways & Means, Richard Neal (D-MA), addressing the expired Second-Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second-Generation Biofuel Plant Property, and the Alternative Fuel Vehicle Refueling Property Credits. Urging Congress to take action on the extension of these tax credits, the letter emphasizes the importance of these credits in stabilizing capital intensive, higher-risk technology projects and in allowing more time to plan for longer-term policy around alternative fuels and infrastructure. The extension request proposes that the House Ways & Means Committee consider a multi-year extension of these credits to reassure the second-generation biofuels, the rural economy, and the refueling infrastructure industry.
Posted on June 01, 2018 by Lynn L BergesonBy Lynn L. Bergeson
On May 25, 2018, the National Biodiesel Board (NBB) dropped its nearly decade long pursuit to convert a $1-per-gallon tax credit for biofuel blenders to an equivalent credit for producers. NBB originally sought to change the credit to support the domestic biofuel industry, as some blenders who benefited from the credit were also importing foreign biodiesel. Recent import duties imposed by the U.S. Commerce Department have done a great deal to curb inexpensive biodiesel imports from Indonesia and Argentina (as reported in the Biobased and Renewable Products Advocacy Group (BRAG®) blog post “USTIC Determines Argentinian And Indonesian Biodiesel Dumping Injured U.S. Industry”), thus removing much of the impetus to convert the tax credit program. The $1-per-gallon credit has been retroactively approved for 2017 and NBB continues to push for the credit’s extension in 2018.
Posted on February 16, 2018 by Lauren M. Graham, Ph.D.By Lauren M. Graham, Ph.D.
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 second-generation biofuel production and alternative fuel vehicle refueling property, and a special allowance for second generation biofuel plant property, were not extended through 2018.
Posted on November 10, 2017 by Kathleen M RobertsBy Kathleen M. Roberts
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 tax advantage is currently available only to investors in fossil fuel-based energy projects. According to Senator Coons, “[u]pdating the tax code in this way will help increase parity and ensure that [clean] energy technologies can permanently benefit from the incentives that traditional energy sources have depended on to build infrastructure for more than 30 years.” The bills were previously introduced in the Senate and House on June 24, 2015.
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