New Tax Credit for Biofuel Production

May 23, 2008
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/.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!