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 sold and used for purposes other than food, feed, or fuel.
|
Bergeson & Campbell, P.C. (B&C®) is a Washington, D.C., law firm providing biobased and renewable chemical product stakeholders unparalleled experience, judgment, and excellence in bringing innovative products to market.
|
|
Enter keywords: 
Add this blog to your feeds
|
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 as the biofuel production tax credit for cellulosic and algae-based biofuels and the special allowance for second generation biofuel plant property. 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 the fact that the Senate is expected to adjourn for the year today, chances are that the Senate will pass tax extender legislation similar to the House-passed version. If that happens and the President enacts it, these tax credits will be retroactively effective for the entire year of 2014 as the prior tax credits had expired on January 1, 2014. There continues to be uncertainty about the future of the tax credits, as this bill will expire on January 1, 2015, with no guarantee of renewal. 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 Agency." 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 online. 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.
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 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 the EXPIRE Act is available online. A summary of the bill is also available online.
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 industry. 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 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 the EXPIRE Act is available online. A summary of the bill is also available online. 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 end of 2013, including several for advanced biofuels development. In fact, the TRA would eliminate most clean energy incentives. The House Ways and Means Hearing Advisory is available online.
|
|
Subscribe
Add this blog to your feeds |