The Biobased and Renewable Products Advocacy Group (BRAG) helps members develop and bring to market their innovative biobased and renewable chemical products through insightful policy and regulatory advocacy. BRAG is managed by B&C® Consortia Management, L.L.C., an affiliate of Bergeson & Campbell, P.C.

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 re-equips a manufacturing facility for the production of certain types of property, including property designed to refine or blend renewable fuels or to produce energy conservation technologies.


Several tax incentives designed to help encourage renewable energy production are set to expire at the end of the year.
 


 

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 online.

Tags: Tax, biofuels

 

On September 12, 2013, Representative Bill Pascrell (D-NJ) introduced H.R. 3084, the "Qualifying Renewable Chemical Production Tax Credit Act," to provide tax parity for the renewable chemical industry in the United States. Along with Representative Pascrell, the original co-sponsors of the bi-partisan bill are Representatives Steve Stockman (R-TX), Allyson Schwartz (D-PA), Linda Sanchez (D-CA), and Richard Neal (D-MA).


Essentially, the bill would extend the current production tax credit (PTC) for cellulosic biofuels to producers of renewable chemicals. It would provide a PTC of 15 cents per pound of eligible renewable content, but it caps the benefit at $500 million and a single producer may not receive more than $25 million in a tax year. A copy of the legislation is available online. Representative Pascrell has stated publicly that he hopes the legislation will help incentivize the U.S. production of renewable chemicals and help develop the industry here in the United States.
 


 
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