BIO Supports Extension of Cellulosic Tax Credits, Inclusion of Algae
Extension of cellulosic biofuel tax credits now and eligibility for algae biofuels are needed to help companies raise financing for first-of-a-kind biorefineries. The Biotechnology Industry Organization (BIO) today thanked Senators Bill Nelson (D-Fla.), Jeff Bingaman (D-N.M.), John Kerry (D-Mass.), Al Franken (D-Minn.), Debbie Stabenow (D-Mich.), Jeff Merkley (D-Ore.), Ron Wyden (D-Ore.) and Tom Udall (D-N.M.) for their request to Senate leadership for this extension.
Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, stated, “The advanced biofuels industry is at an inflection point and is rapidly maturing because biotech companies have made significant private investments to commercialize the technology. Additional investment is needed to build commercial scale biorefineries to produce these advanced biofuels. The cellulosic biofuels production tax credit and the accelerated depreciation for cellulosic biofuel property have the potential to unlock this vital project financing. Algae biofuels also need to be eligible for these credits. But the December 31, 2012, expiration date for these credits prevents project developers from leveraging their full value.
“BIO and its member companies thank the Senators who have recognized the importance of supportive, stable federal policy to ensure that advanced biofuels developers can move forward on first-of-a-kind commercial projects. We ask that any tax package that considers effectively expired provisions extend the cellulosic biofuels production tax credit and accelerated depreciation for cellulosic biofuel property, and include eligibility of algae-based biofuels.”
In addition to extending the tax credits for cellulosic biofuels, BIO supports extension of the Qualifying Therapeutic Discovery Project credit and the Research and Experimentation credit.