BIO Urges Congress to Extend Biofuels Tax Incentives
BIO Urges Congress to Extend Biofuels Tax Incentives
Statement for the Record Submitted to Subcommittee on Select Revenue Measures
Washington, D.C. (March 12, 2019) – The Biotechnology Innovation Organization (BIO) today submitted the following statement for the record to the House Ways and Means Subcommittee on Select Revenue Measures urging Congress to retroactively extend the biofuels tax incentives that expired at the end of 2017. The subcommittee today held a hearing entitled “Temporary Policy in the Internal Revenue Code.”
“BIO urges you to retroactively extend the tax provisions that expired at the end of 2017 for 2018 and provide a seamless multi-year extension going forward. Immediate action is necessary with the tax filing season underway for 2018. Companies are at risk of losing a critical incentive they counted on and are unable to plan for 2019. The biofuel tax provisions – particularly the Second Generation Biofuel Producer Tax Credit (PTC), the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, and the Alternative Fuel Vehicle Refueling Property Credit – are critical to BIO’s Industrial and Environmental members and the development of low-carbon advanced and cellulosic biofuels.
“The on-again, off-again nature of these incentives has created uncertainty for investors and the industry about the availability of these credits; jeopardizing the long-term investments necessary for the development of advanced and cellulosic biofuels. Availability of these credits is critical as our companies make significant investments to create new agricultural supply chains, build infrastructure for liquid biofuels, and develop innovative new technologies. These credits have enabled our industry to create new jobs, contribute to rural prosperity, and diversify our nation’s energy supply. However, the continued delays in extending these credits put these investments and benefits at risk.
“Ensuring further growth in the advanced and cellulosic biofuels industry will require additional support and greater policy certainty going forward. As such, we encourage the Congress to advance a multi-year extension of advanced and cellulosic biofuel tax incentives. Motor fuel markets are not free markets. The oil industry receives permanent federal subsidies and tax breaks that give incumbents a market advantage over renewable fuels if not remedied by the counterbalancing incentives described above. While temporary extensions are not enough to create parity, they help bridge the gap to comprehensive energy tax reform. Arbitrarily allowing these tax credits to expire in the near term would be premature and would significantly limit the growth in the domestic advanced and cellulosic biofuels industry and undermine all the positive contributions the industry has made to national security, the economy, and the environment to date.
“In the interest of job creation, infrastructure development, innovation, the environment, and energy security, we respectfully ask Congress to immediately pass a seamless multi-year extension of the Second Generation Biofuel PTC and the suite of other biofuel tax incentives. These provisions are essential ingredients in any effort to accelerate the commercialization of advanced and cellulosic biofuels. We ask that you include these provisions in any tax package. Thank you for your consideration.”
BIO urges Congress to retroactively extend the following tax provisions that expired at the end of 2017 for 2018 and provide a seamless multi-year extension going forward:
• Second Generation Biofuel Producer Tax Credit
• Special Depreciation Allowance for Second Generation Biofuel Plant Property
• Biodiesel and Renewable Diesel Fuels Credit
• Alternative Fuel Vehicle Refueling Property
Click here to view BIO's full written testimony.
About BIO
BIO is the world's largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIOtechNOW is BIO's blog chronicling “innovations transforming our world” and the BIO Newsletter is the organization’s bi-weekly email newsletter. Subscribe to the BIO Newsletter.
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