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ABO and BIO Support Extending Tax Credits, Including Algae
December 20, 2011
he Algal Biomass Organization (ABO) thanked Senators Bill Nelson (D-Fla.), Jeff Bingaman (D-N.M.), John Kerry (D-Mass.), Al Franken (D-Minn.), Debbie Stabenow (D-Mich.), Jeff Merkley (D-Ore.), Ron Wyden (D-Ore.) and Tom Udall (D-N.M.) for their efforts to help level the playing field for algae-derived fuels. In a letter sent to Senate Majority Leader Harry Reid (D-NV) and Minority Leader McConnell (R-KY), the group asked Senators for consideration of an extension of cellulosic biofuels tax incentives, including language clarifying the eligibility of algae-based biofuels, in any possible extension of tax provisions slated to expire at the end of 2012.
Specifically, the letter asked the Senate leaders to clarify the eligibility of algae-based biofuels by including language similar to that in S. 748, the Algae-based Renewable Fuel Promotion Act.
“On behalf of our members across the value chain of the algae industry, we thank the Senators for their support,” said Mary Rosenthal, Executive Director of ABO. “The availability of long term, sustainable and domestic sources of fuel is in the economic, security and environmental strategic interests of our nation. But we need supportive and predictable federal policy to help accelerate the development of biorefineries capable of producing billions of gallons of renewable fuels. Not only will this reduce our dependency on imported oil, it will create tens of thousands of jobs across the country.”
The Biotechnology Industry Organization (BIO) also publically thanked the legislative team for their request to Senate leadership for this extension.
Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, said, “The advanced biofuels industry is at an inflection point and is rapidly maturing because biotech companies have made significant private investments to commercialize the technology. Additional investment is needed to build commercial scale biorefineries to produce these advanced biofuels. The cellulosic biofuels production tax credit and the accelerated depreciation for cellulosic biofuel property have the potential to unlock this vital project financing. Algae biofuels also need to be eligible for these credits. But the December 31, 2012, expiration date for these credits prevents project developers from leveraging their full value.”