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.

By 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.

Tags: Tax, Biofuel

 

By 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.

Tags: Biofuel, Tax

 

By 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.

Tags: NBB, Tax, Biofuel

 

 

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.


 

By 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.


 

By Lauren M. Graham, Ph.D.

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 that is part of a renewable chemical production facility.   The bipartisan bill was co-sponsored by Senators Susan Collins (R-ME), Chris Coons (D-DE), Al Franken (D-MN), and Tammy Baldwin (D-WI), and is companion legislation to H.R. 3149, which was introduced in the House in June 2017 by Representative Bill Pascrell (D-NJ).


 

By Kathleen M. Roberts

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 City, the largest municipal consumer of heating oil in the country, instituted a citywide two percent biodiesel requirement in 2012, which increases to five percent on October 1, 2017.  With the new legislation, the entire New York City Metropolitan Area, representing approximately 70 percent of the state’s heating oil market, will have a five percent biodiesel blending requirement.  NBB commended Governor Cuomo for signing the bill, stating that it will provide cleaner air for more New Yorkers and support local jobs in the clean energy sector.


 

By Lauren M. Graham, Ph.D.

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 stakeholders, including the Biotechnology Innovation Organization (BIO), Renmatix, and DSM, praised the proposed legislation. 


 

By Kathleen M. Roberts

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 the unintended consequences of the credit.  The legislative proposals in Congress restructure the incentive so that U.S. producers qualify for the credit, which cuts off subsidies for foreign manufacturing and reduces the potential for tax fraud.

Tags: NBB, Biodiesel, Tax

 
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