Farm Bill’s New Tax Credit for Biofuel Production Will Support Development of Advanced Low-Carbon Biofuels
WASHINGTON, D.C. (Wednesday, May 21, 2008) - The Farm Bill’s new Credit for Production of Cellulosic Biofuel provides an important incentive for commercialization of second- and third-generation cellulosic biofuels. The Biotechnology Industry Organization (BIO) today urged Congress to override President Bush’s veto.
“The farm bill supports acceleration of commercialization that will help make advanced biofuel technology cost-competitive with mature fuel production technologies in the near future,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section. “Industrial biotechnology companies are developing advanced cellulosic biofuels such as cellulosic ethanol, biobutanol and biobased hydrocarbons. These low-carbon biofuels are made from non-food feedstocks and can directly replace gasoline in transportation fuels, including jet fuel, using the same distribution infrastructure currently in place. The new Credit for Production of Cellulosic Biofuel will encourage companies to move forward as rapidly as possible to build commercial-scale biorefineries and begin producing these new biofuels for consumers.”
The Farm Bill includes a new, temporary production tax credit for up to $1.01 per gallon, available through December 31, 2012, with an estimated cost of $403 million over the ten-year budget window.
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BIO represents more than 1,200 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.