Update On Biofuels Tax Credit Extensions

Joanna Schroeder

The biofuels industry has been watching closely as the various biofuels tax incentives make their way through the Senate. Today the U.S. Senate voted to invoke cloture on the motion to proceed to major tax legislation containing one-year tax extensions of key biofuels tax incentives including VEETC, the Small Ethanol Producer Tax Credit, Secondary Tariff, the Alternative Vehicle Refueling Property credit and the $1 per gallons biodiesel tax credit for both 2010 and 2011.

“This procedural vote is the first step in the legislative process, and it signals that the U.S. Senate will adopt the tax package containing critical ethanol extensions later this week. We are hopeful that very soon after the Senate enacts this legislation the U.S. House of Representatives will as well,” said Brian Jennings, Executive Vice President of the American Coalition for Ethanol (ACE).

Jennings continued, “ACE has mobilized grassroots support for the tax legislation and ethanol provisions in the U.S. House so that the bill is sent to President Obama’s desk for his signature. Members of Congress voting for this important legislation will help prevent Americans from paying higher gas taxes, help save existing jobs and create new jobs in rural American and reduce our dangerous dependence on foreign oil.”

Growth Energy also weighed in on the vote and CEO Tom Buis said, “With today’s vote, the Senate took a critical step toward reducing our dependence on foreign oil, creating jobs in the U.S., improving our environment, and strengthening our national security. Extending the current ethanol incentives today will give Congress the opportunity to implement longer term solutions, like our Fueling Freedom Plan, next year.”

ACE, Ethanol, RFA