Congress Returns to Much Unfinished Business: Bioenergy Incentives in the Mix

A number of bills that would advance renewable bioenergy are still awaiting Congressional action. Not much legislative time is left before Congress adjourns for the final campaign sprint to the elections. A productive lame duck session after the election may be the best hope for a comprehensive tax extenders package to be considered.

The following bills, which would advance the development of renewable bioenergy, are awaiting action. All would be good candidates for inclusion in an end-of-year tax extenders legislative package.

The Family and Business Tax Cut Certainty Act of 2012 (S. 3521) would extend the following tax incentives for bioenergy systems: 1) investment tax credit in lieu of production tax credit (including for a variety of types of biopower); 2) alternative fuel vehicle refueling property; 3) cellulosic biofuels producer tax credit (including algae-based fuels); 4) incentives for biodiesel and renewable diesel; 5) cellulosic biofuels bonus depreciation; and 6) incentives for alternative fuel and alternative fuel mixtures. Check out the summary here . The Senate Finance Committee approved the bill in early August with strong bipartisan support. It is uncertain whether or when the bill will be brought to the floor for debate.

As reported previously , Senators Bingaman (D-NM), Feinstein (D-CA), Snowe (R-ME), Merkley (D-OR), and Shaheen (D-NH) have introduced a bill to advance the expansion of renewable biomass thermal energy and biomass combined heat and power (CHP) in the United States. The Expanding Industrial Energy and Water Efficiency Incentives Act (S. 3352) would expand the existing tax credit for CHP investment to larger systems and create a new investment tax credit for biomass thermal systems – the higher the efficiency, the higher the tax credit.
Earlier this year, Senators Chris Coons (D-DE) and Jerry Moran (R-KS) introduced a bill to spark investment in renewable energy projects. The Master Limited Partnerships Parity Act of 2012 (S. 3275) extends to renewable energy developers the same type of tax incentive now available only to oil, gas, and coal project developers. To find out more, check out their white paper .

Finally, on the House side, at the end of July, Rep. Ron Kind (D-WI) introduced the Biogas Investment Tax Credit Act of 2012 (H.R. 6212). The bill would amend the Internal Revenue Code to allow: (1) an energy tax credit through 2018 for investment in qualified biogas property such as anaerobic digesters, and (2) financing of qualified biogas property with new clean renewable energy bonds. The bill is pending consideration by the House Ways and Means Committee.