WASHINGTON, D.C. – Following the passage of end-year government funding in Congress that includes COVID-19 relief, Growth Energy CEO Emily Skor praised the inclusion of biofuels industry relief and the extension of critical tax credits. The bill includes $13 billion for the Department of Agriculture (USDA) to support our farmers and agriculture sector, and specifically allows for payments to producers of advanced biofuel, biomass-based diesel, cellulosic biofuel, conventional biofuel, or renewable fuel. The bill also provides $284 billion for the Paycheck Protection Program which allows qualified small businesses to access a second round of forgivable loans. Created in the CARES Act, this critical financial aid assisted several ethanol plants in staying afloat through a particularly difficult summer.
Additionally, the bill extended a number of critical tax credits for the industry, including a one-year extension of the Section 40 Second Generation Biofuel Producer Tax Credit, a $1.01 credit per gallon of second-generation biofuel produced; and two-year extension of the Section 45Q Tax Credit, a credit on a per-ton basis of carbon dioxide that is sequestered.
Just last week, Growth Energy sent a letter to Congressional leadership asking for Congress to “use all legislative tools available to support our businesses and infrastructure workforce during a time of depressed gasoline demand.”
“We’re grateful to Congress for stepping up and preventing needless uncertainty from holding back the rural recovery,” said Growth Energy CEO Emily Skor. “In 2020, ethanol production is down about 13% compared to the previous year, and 2021 is also projecting to be lower than 2019 levels. Ensuring stability is imperative as we head into the new year, and we urge Secretary Perdue to move quickly on providing relief to the biofuels industry.
“We are also glad to see long-term investment in innovation that helps protect our climate, our health, and our economy through the extension of several key biofuels tax credits. Getting these updates signed into law will jumpstart growth in these innovative technologies at a time when revitalizing rural communities has never been more important.”