Print

U.S. extends biomass tax credits

By Erin Voegele
Web exclusive posted Oct. 15, 2008 at 4:18 p.m. CST

The Emergency Economic Stabilization Act of 2008, signed into law Oct. 3 by U.S. President George W. Bush, was most widely known as a bailout package designed to stabilize the financial industry. However, the legislation also included important tax legislation for the biomass industry.

The act extends the placed-in-service sunset date to claim tax credits for closed-loop and open-loop biomass facilities until Dec. 31, 2010. In addition, new biomass power generation units placed in service to connect existing qualified open-loop biomass and closed-loop biomass facilities are treated as qualified facilities, to the extent of the increased amount of electricity produced by the new units. This provision is effective for property placed in service after Oct. 3.

The act also extends the 50 percent bonus depreciation to property used to produce cellulosic biofuels, rather than just cellulosic ethanol. The provision is effective for property placed in service after Oct. 3.
 

0 Responses

     

    Leave a Reply

    Biomass Magazine encourages civil conversation and debate. However, comments containing personal attacks, profanity, business solicitations or other advertising will be deleted.

    Comments are closed