Tax incentives play a key role in the development and production of renewable energy, and the American Farm Bureau Federation (AFBF) 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 on energy tax incentives, 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 legislation that would extend the biodiesel tax incentive for five years and change the biodiesel tax incentive from a blenders excise tax credit to a production excise tax credit. The general farm organization also backs the Renewable Fuels Reinvestment Act that extends the Volumetric Ethanol Excise Tax Credit and the Small Ethanol Producers Tax Credit for five years through 2015. That 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.
“Clean and renewable domestic energy will help America achieve long-term economic growth, create a cleaner environment and shield our energy supply from unreliable foreign sources,” said AFBF President Bob Stallman. “Renewable fuels are vital for rural America. They create much needed jobs and open new markets for farmers and ranchers. Tax incentives play a key role in the development and production of renewable energy.”