In a letter sent to leaders of the Senate Finance and House Ways and Means committees, advanced biofuel businesses and advocacy groups have said that while cellulosic biofuels are currently eligible for a $1.01-per-gallon production tax credit, there is a lag in commercial production that leaves the incentive unused. The letter states that a targeted investment tax credit will help the industry attract investment capital needed to accelerate production and meet ambitious volume requirements of the renewable fuel standard.
The federal Renewable Fuels Standard requires the use of cellulosic biofuels beginning in 2010. However, no commercial cellulosic biorefineries are anticipated to be commissioned before next year at the earliest. The letter says the incentive is needed to boost the construction of advanced biofuel refineries.
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