Biomass Gets Tax Break, Oil & Gas Get Tax Hike
Nicolas Loris /
With wind, solar and geothermal receiving much of the government handouts when it comes to energy production, biomass is back in the game after the Senate Finance Committee unveiled its tax extender plan, which includes a $100 million in production tax credits for biomass energy as part of a larger tax extender package. Politico reports,
As drafted, Section 503 breathed new life into an unusual production tax credit, first awarded to the industry in 2004 as part of a one-time, five-year deal benefiting nearly 80 biomass electric-generating plants, most of which were up and running well before the tax break was enacted. The House balked at renewing this bargain in December, saying production tax credits are to spur new production, not to subsidize old. But Finance subtly changes the old wording from five years to six, thereby adding 12 months to a tax break that is typically worth about $1.75 million annually for a qualified 20-megawatt plant.”