New Tax Credit for Biofuel Production

The Farm Bill will support development of advanced low-carbon biofuels.

The Farm Bill's new Credit for Production of Cellulosic Biofuel provides an incentive for commercialization of second-and third-generation cellulosic biofuels. The 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.

"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 The Biotechnology Industry Organization (BIO) 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."

BIO has urged Congress to override President Bush's veto.

The Advanced Biofuels & Climate Change Information Center presents the latest commentary and data on the environmental and other impacts of biofuel production. http://biofuelsandclimate.wordpress.com/.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish