Advanced biofuels produced from algae and cellulosic material can decrease dependence on oil and generate green jobs. Diverse, sustained federal programs are important to assist producers secure funding for the development of projects.
Recently, the Algal Biomass Organization (ABO), Advanced BioFuels Association (ABFA) and the Biotechnology Industry Organization (BIO) joined together with other advanced biofuels companies and trade organizations to ask the representatives of the House Ways and Means Committee for extending the cellulosic biofuels production tax credit’s expiration, making advanced biofuels and algae eligible and establishing a refundable investment tax credit.
Advanced biofuel producers that seek investment to construct infrastructure and biorefineries find it difficult to secure financing for commercial-scale plants. This tax credits extension will provide prospective investors with the confidence they require to make investments in novel algae and cellulosic-based sophisticated biofuel plants. This refundable investment tax credit will help provide sophisticated biofuel developers with the essential flexibility they need in choosing the type of tax incentive that suits them best.