Senate vote imminent on Stabenow amendment to extend tax credits
An amendment to the Surface Transportation Bill, or S.1813, that would extend the biodiesel tax credit and take other important actions on bioenergy tax incentives has been introduced in the U.S. Senate. The amendment, known as S.1812, is sponsored by Sen. Debbie Stabenow, D-Mich., and is expected to go to vote March 13.
The amendment could extend the $1 tax incentive for biodiesel and renewable diesel for one year, through Dec. 31, 2012. It would also establish and extend several other tax incentives important to the biofuels industry.
Regarding algae, the amendment includes language that would treat algae as qualified feedstock for the purposes of the cellulosic biofuel producer credit. It would apply to any cultivated algae, cynaobacteria or lemna. Algae would also be treated as a qualified feedstock for purposes of bonus depreciation for biofuel plant property.
Stabenow’s amendment would also extend the cellulosic biofuel producer credit. If passed into law the extension would apply to applicable fuel produced before Jan. 1, 2014. In addition, the accelerated depreciation allowance for cellulosic biofuel plant property would be extended through 2013.
“We applaud Sen. Stabenow for introducing this amendment and we urge all senators to support it,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board. “This is about creating good-paying jobs and building up a U.S. energy industry that will help end our dangerous vulnerability to the kinds of oil price spikes we're seeing now.”
The Advanced Ethanol Council has also spoken out in support of the amendment. In a letter to Senate Majority Leader Harry Ried, D-Nev., and Senate Minority Leader Mitch McConnell, R-Ky., AEC Executive Director Brooke Coleman said the cellulosic biofuel components of the amendment are vital to the ongoing development of the domestic advanced and cellulosic ethanol industries.