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December 11, 2014

House Of Representatives Extends Bioenergy Tax Credits For 2014


On December 1, 2014, the U.S. House of Representatives passed H.R.
5771, the Tax Increase Prevention Act of 2014
, more commonly
referred to as the tax extender bill. This bill extends through 2014 the
dollar-per-gallon biodiesel tax credit, as well as the biofuel production tax
credit for cellulosic and algae-based biofuels and the special allowance for
second generation biofuel plant property. While the Chair of the Senate
Committee on Finance is reportedly still working to pass a tax extender bill
that would extend these expiring incentives beyond 2014, especially given the
fact that the Senate is expected to adjourn for the year today, chances are
that the Senate will pass tax extender legislation similar to the House-passed
version. If that happens and the President enacts it, these tax credits will be
retroactively effective for the entire year of 2014 as the prior tax credits
had expired on January 1, 2014. There continues to be uncertainty about the
future of the tax credits, as this bill will expire on January 1, 2015, with no
guarantee of renewal.