RFA: Bill introduced to extend second-generation biofuels tax credit
On November 8, 2024, the Renewable Fuels Association (RFA) expressed appreciation for bipartisan legislation introduced by Representatives Mariannette Miller-Meeks (R-Iowa) and Sharice Davids (D-Kan.) to extend the Second Generation Biofuel Producer Tax Credit for an additional year, through 2025. This extension provides certainty for biofuel producers as they await regulations for the new 45Z clean fuel producer tax credit, slated to take effect in 2025.
November 12, 2024
BY Renewable Fuels Association
The Renewable Fuels Association on Nov. 8 thanked a bipartisan duo of lawmakers who introduced legislation to extend the Second Generation Biofuel Producer Tax Credit for an additional year. 2022’s Inflation Reduction Act extended this credit until the end of 2024, and this new bill would extend it through 2025, allowing time for the federal government to complete its work on another key credit to promote lower-carbon fuels, RFA noted.
The House bill was introduced by Reps. Mariannette Miller-Meeks, R-Iowa, and Sharice Davids, D-Kan.
“Cellulosic biofuel producers have been anxiously awaiting guidance from the Treasury Department on the new 45Z clean fuel producer tax credit that is supposed to take effect just two months from now,” said RFA President and CEO Geoff Cooper. “But with 2025 just around the corner, Treasury has not yet proposed regulations to implement the 45Z credit and there is no clarity on the timeline or path forward. By extending the existing tax credit for second-generation biofuels by one year, this bipartisan legislation provides marketplace certainty and allows for a smooth transition to the new tax credit regime. We applaud Reps. Miller-Meeks and Davids for taking action to protect the market for cellulosic ethanol made from grain fiber, which is the lowest-cost, lowest-carbon liquid fuel available in the marketplace today.”
Under current law, a second-generation biofuel producer may be eligible for a tax incentive in the amount of up to $1.01 per gallon of second-generation biofuel. The incentive is allowed as a credit against the producer’s income tax liability.
Source Link : https://ethanolproducer.com/articles/rfa-bill-introduced-to-extend-second-generation-biofuels-tax-credit
