US Congress Passes “Fiscal Cliff” Deal

Agriculture, Algae/Other Aquatic Organisms/Seaweed, Business News/Analysis, Energy, Federal Agency, Federal Legislation, Funding/Financing/Investing, Policy

January 2, 2013

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by Jim Lane (Biofuels Digest) …Four tax provisions were in the bill that directly impact biofuels.

Cellulosic biofuels producer tax credit. … The provision would extend this production tax credit for one additional year, for cellulosic biofuel produced through 2013. The proposal also expands the definition of qualified cellulosic biofuel production to include algae-based fuel. …

Incentives for biodiesel and renewable diesel. The bill extends for two years, through 2013, the $1.00 per gallon tax credit for biodiesel, as well as the small agri-biodiesel producer credit of 10 cents per gallon. The bill also extends through 2013 the $1.00 per gallon tax credit for diesel fuel created from biomass. …

Cellulosic biofuels bonus depreciation. Under current law, facilities producing cellulosic biofuel can expense 50 percent of their eligible capital costs in the first year for facilities placed-in-service by the end of 2012. This provision was created in the 2008 Farm Bill. The provision would extend this bonus depreciation for one additional year for facilities placed-in-service before the end of 2013. The proposal also expands the definition of qualified cellulosic biofuel production to include algae-based fuel. …

Agricultural Programs. Section 701 of the Bill extended all provisions of the 2008 Farm Bill through September 30, 2012 – including funding levels for mandatory programs. READ MORE and MORE (Renewable Fuels Association) and MORE (Biodiesel Magazine/National Biodiesel Board) and MORE (Biodiesel Magazine) and MORE (Ethanol Producer Magazine) and MORE (DomesticFuel.com includes audio) and MORE (Biofuels International) and MORE (The Energy Collective) and MORE (Algae Industry Magazine/Algae Biomass Organization) and MORE (DomesticFuel.com) and MORE (San Francisco Business Times) and MORE (Environmental and Energy Study Institute) and MORE (Hoosier Ag Today)

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