ABFA says inconsistent US tax policy blocking renewable fuels growth

In Washington, Advanced Biofuels Association President Mike McAdams, told the U.S. House Energy and Commerce Subcommittee on Energy and Power that “a consistent commitment by Congress will successfully transform America’s energy policy to cleaner and renewable sources.

“Stable, long term, common sense government policies will expedite this transition by helping to provide the market with certainty, which will spur private sector investment,” he added. “A sensible, economically driven approach that drives commercialization will lead to the strengthening of our national and economic security, while creating a significant number of new jobs for our country.”

McAdams testified the core of that commitment should remain the Renewable Fuels Standard (RFS) which he told members of the committee is “the most important federal policy in supporting the development of a biofuels industry in this country.”

McAdams warned,  “One of the primary reasons for the disappointing lack of commercial funding has been our biofuels tax policy. The current code is inconsistent in what it rewards according to the molecule, or feedstock or process used. Advanced and cellulosic biofuels tax policy does not provide parity and in many cases the credit is not in the right form to enable companies to monetize their value.”