Tax incentives play a key role in the development and production of renewable energy, and the American Farm Bureau Federation is urging Congress to pass two bills that would extend renewable fuel tax credits for five years. In a statement presented for the record to a House Ways and Means Committee hearing this week, AFBF said long-term tax incentives are needed to boost renewable energy technologies and support development of the market infrastructure necessary to make these technologies more competitive.
AFBF supports H.R. 4070, introduced by Representatives Earl Pomeroy, D-N.D., and John Shimkus, R-Ill., which would extend the biodiesel tax incentive for five years. In addition, the legislation would change the biodiesel tax incentive from a blenders excise tax credit to a production excise tax credit. According to Farm Bureau, this change will improve administration of the nation's tax laws and protect the integrity of the credit.
AFBF also backs H.R. 4940, the Renewable Fuels Reinvestment Act, also introduced by Pomeroy and Shimkus, which extends the Volumetric Ethanol Excise Tax Credit and the Small Ethanol Producers Tax Credit for five years through 2015. The bill also extends the Cellulosic Ethanol Production Tax Credit for three years, through 2015 and the secondary tariff on ethanol that offsets the benefit received by imported ethanol.