BPA urges Congress to preserve tax credits for biomass

By Biomass Power Association | November 25, 2015

The Biomass Power Association has strongly urged Congress to preserve Section 45 Production Tax Credits for the biomass industry, rather than phasing out all renewable tax credits. Biomass power facilities are eligible for only half the 2.3-cent-per-kilowatt-hour credit awarded to wind projects—a discrepancy which has made it difficult for biomass projects to compete for funding.

“Because of the lopsided playing field created by awarding wind power double the production tax credit, the biomass industry has experienced much slower growth,” said Bob Cleaves, president of BPA. “Phasing out this credit for biomass will make it nearly impossible to build a new biomass facility—and will solidify the outsized role played by natural gas and wind in our national energy mix.”

Reports indicate that the tax package currently under consideration by Congress would phase out credits for wind and solar—but only after a significant, multi-year boon for these technologies.

“Besides employing thousands of Americans in rural areas, our industry provides a new market for fiber in the face of declining pulp and paper markets. Biomass helps keep forests as forests,” continued Cleaves.