GREEN Act Includes Biofuel, Bioenergy Tax Extenders

by Erin Voegele (Ethanol Producer Magazine) Mike Thompson, D-Calif., chairman of the House Ways and Means Subcommittee on Select Revenue Measures, on Feb. 5 announced the introduction of the Growing Renewable Energy and Efficiency Now (GREEN) Act, which includes several tax extenders that would benefit the biofuel and bioenergy industries.

The bill would extend the Section 45 production tax credit (PTC) for electricity produced from certain renewable resources. For facilities that produce electricity from landfill gas, trash, qualified hydropower, or marine and hydrokinetic, the credit would be extended through 2026.

It would also extend and modify the Section 48 investment tax credit (ITC), which allows taxpayers to claim a credit for up to 30 percent of the cost of qualified energy property. In most cases, the provision would extend the credit at full value for property for which construction begins by the end of 2026, and then phases down over two years. For biogas property, the bill would extend the ITC at 30 percent through the end of the 2026. It would then phase down to 26 percent in 2027 and 22 percent in 2028.

The GREEN Act would also extend the 45Q credit for carbon oxide sequestration to facilities that begin construction before the end of 2026.

For renewable fuels, the bill would extend the income and excise tax credits for biodiesel and biodiesel mixtures at $1.00 per gallon through 2022, with the credit phased down to 75 cents per gallon in 2023, 50 cents per gallon in 2024 and 33 cents per gallon in 2025. The credit would expire at the end of 2025. The legislation would also extend the 10 cent per gallon small agri-biodiesel producer credit through the end of 2025.

Other provisions of the bill aims to extend the second generation biofuel income tax credit and the alternative fuel refueling property credit through 2026.

A statement released by Thompson states that the American Biogas Council and Biomass Power Association are among the groups who support the GREEN Act.