Biofuels industry requests accelerated depreciation, tax credit extension
March 02, 2012
Representatives from the United States biofuel industry recently sent a letter to Congress advocating for the five-year extension of a tax credit for cellulosic biofuels producers and the accelerated depreciation
allowance for cellulosic biofuels plant property.
"The cellulosic biofuel PTC and accelerated depreciation allowance are critical to our efforts to attract capital," wrote the more than 30 CEOs of advanced biofuels companies. "It will be much more difficult for our companies to develop projects in the United States if current depreciation allowances expire and taxes on our industry increase in 2013."
Representatives from several industry groups - the Advanced Ethanol Council, the Biotechnology Industry Organization and the Advanced Biofuels Association (ABFA) - expressed their support for the CEOs' requests, stating that the tax credit and depreciation schedule
change would benefit the economy.
ABFA president Michael McAdams noted that renewable fuels are likely to be especially appreciated given high gas costs. Some experts - including the Oil Price Information Service - are predicting a record-breaking price of $4.25 per gallon by late April.