US Congress act 'would' fix biogas and AD tax credit inequality
The American Biogas Council (ABC) has welcomed the introduction of a new bill in Congress which would extend the renewable electricity tax credit to include anaerobic digestion (AD) and biogas technology.
Congresswoman Elise Stefanik’s bill, labelled the Renewable Electricity Tax Credit Equalisation Act (HR 4137), would see tax credit applied to open and closed-loop biomass, hydropower, geothermal and waste energy.
"The biogas industry applauds the introduction of the Renewable Electricity Tax Credit Equalisation Act which will fix inequities in our tax code and allow biogas systems and baseload renewable energy project development to grow," said Patrick Serfass, executive director of ABC, in a statement.
ABC is a trade association representing the 'entire' US biogas industry. It represents over 200 companies in all parts of the biogas supply chain who are dedicated to maximising the production and use of biogas from organic waste.
"The US biogas industry has the potential to build at least 13,000 new systems which would catalyse about $40 billion in new capital investments, create 335,000 construction jobs and 23,000 permanent jobs and build the infrastructure we need for recycling organic material while protecting our air, water and soil," Serfass continued.
Tax incentives for biogas and AD technologies expired at the end of 2016, while credits for wind and solar electricity resources were provided long-term extensions at the end of 2015. With biogas and AD in direct competition with AD and biogas, ABC claims the disparity in tax credits put the industry at an economic disadvantage in the market for new renewable electricity generation.
HR 4137, according to ABC, will address this disparity “and ensure that the federal government doesn’t pick winners and losers”. The national trade association for the US biogas industry argues that without HR 4137, “further development of clean, reliable baseload energy resources are in jeopardy.”