Three Ethanol Tax Credits Are Extended For 2013
2013 begins on a positive note for the Ethanol, Biofuel, and Wind Energy Industries as the American Taxpayer Relief Act of 2012 extended three ethanol tax credits for 2013 and extended the Wind Energy production tax credit.
Growth Energy, the group leading national awareness of ethanol, released the following statement:
“I commend both the Senate and the House of Representatives for recognizing the importance of renewable fuels and acting to extend both the cellulosic producer tax credit and the alternative fuel infrastructure tax credit through 2013…”
The full statement can be read on Growth Energy’s Website
The major ethanol benefactor of these tax credits is cellulosic ethanol, which is produced using non-edible portions of plant life and other non-food sources, which include municipal waste. Although still in the development stages cellulosic ethanol has great potential to be a viable source of fuel for the future. A number of full scale production plants are in development in the U.S. and globally a number of cellulosic plants are operating successfully.
Algae which has shown tremendous promise in scientific studies as an ethanol producing agent was also another ethanol source material added to the tax credit. Biodiesel production tax credits were also extended for the next two years.
The Wind Industry had put a number of projects on hold until the tax credits were reinstated . The benefits of these tax breaks for the Wind Industry may not be felt until 2014 when a lot of these projects are completed.
In 2012 the standard corn producing ethanol tax credit in the U.S. expired. Since its expiration the ethanol industry has struggled, largely due to a drought, but it has been able to sustain itself and the implementation of E15 will further help it to succeed. The goal of the tax credits is to encourage the production of new renewable sources of fuel that could have potentially long term benefits in helping the U.S. achieve fuel independence.