36 groups urge Congress to extend biofuel, bioenergy tax credits
November 15, 2024
BY Erin Voegele
Approximately three dozen organizations, including the Advanced Biofuels Association, American Biogas Council, Coalition for Renewable Natural Gas (RNG Coalition), Iowa Biodiesel Board, Renewable Fuels Association, and Sustainable Advanced Biofuel Refiners, on Nov. 13 sent a letter to federal lawmakers urging Congress to extend several expiring tax credits during the Lame Duck session.
“As you know, beginning January 1, 2025, and following enactment of the Inflation Reduction Act of 2022 (PL 117-169), the tax code institutes a planned shift from the longstanding structure of energy tax incentives flowing from the Energy Policy Act of 2005 toward a new ‘technology-neutral’ energy tax regime,” the groups wrote. “This new regime, anchored by the Section 48E clean electricity investment tax credit, 45Y clean electricity production tax credit, and 45Z clean fuels credit, will represent a significant change for which many of our companies and industries have spent much of 2024 planning. Unfortunately, the Treasury Department has not yet implemented final regulations for any of these policies, meaning we approach 2025 with significant uncertainty.”
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The letter specifically asks Congress to extend the 40A biodiesel tax credit, the 40B sustainable aviation fuel (SAF) tax credit, the 40(b)(6) second generation biofuel producer credit, the 48(c)(1) qualified fuel cell investment tax credit, the 48(c)(7) qualified biogas investment tax credit and the 6426 ,6427 alternative fuel tax credit.
“Particularly given the upcoming 2025 tax policy debate, enacting a modest, short-term tax package this fall would help to ensure energy and agriculture market stability and predictability while preserving grounds for an open energy and tax debate in the 119th Congress,” the groups wrote.
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Without the certainty of these tax credit extensions, the groups note that American consumers could face rising energy and fuel prices. Impacted businesses would also face regulatory, legal and tax filing uncertainty. “The combination of these effects would be economic headwinds at a time when Congress and tax-writers are attempting to consider more broad, holistic reforms and extensions in the tax system,” the groups added.
The letter is signed by Advanced Biofuels Association, Airlines for America, American Biogas Council, American Public Gas Association, American Soybean Association, American Trucking Associations, Coalition for Renewable Natural Gas, Connecticut Energy Marketers Association, Empire State Energy Association Inc., Energy Marketers Association of Rhode Island , Energy Marketers of America, Energy Marketers of New Hampshire, Fuel Cell and Hydrogen Energy Association (FCHEA), Illinois Soybean Growers, Iowa Biodiesel Board, Iowa Soybean Association, Kentucky Soybean Association, Maine Energy Marketers Association, Massachusetts Energy Marketers Association, Mid-Atlantic Soybean Association (DE, MD, NJ, PA), Minnesota Soybean Growers Association, National Association of Convenience Stores (NACS), National Association of Oil and Energy Service Professionals (OESP), National Energy & Fuels Institute (NEFI), National Private Truck Council, National Propane Gas Association, NATSO, Representing America’s Travel Centers and Truck Stops, Pennsylvania Petroleum Association, Propane Gas Association of New England, Renewable Fuels Association, SIGMA: America’s Leading Fuel Marketers, Sustainable Advanced Biofuel Refiners (SABR), New York State Energy Coalition, The Transport Project, Truckload Carriers Association, and Wisconsin Soybean Association.
A full copy of the letter is available on the NATSO website.
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