The Wood and Fiber Supply Chain Experts
Reinvestment: Biomass Measures in the Stimulus Bill
From the March 2009 Forest2Mill newsletter.
One particularly helpful provision of the American Recovery and Reinvestment Act of 2009 is the extension of and alternatives to the production tax credit. Companies producing electricity from biomass can either:
- Take a production tax credit (PTC) through 2013, OR
- If placing a facility in service between 2009 and 2013, they can elect to take an investment tax credit of 30 percent instead of a PTC, OR
- If they begin construction in 2009 or 2010, they can opt for an up-front grant from the government in the amount of 30 percent.
Among the other provisions targeting renewable energy and the associated job creation:
- A first-year bonus depreciation schedule for property place in service in 2009; 50 percent of the cost could be depreciated the first year and the remaining 50 percent would follow the regular depreciation schedule.
- A tripling of funding for Clean Renewable Energy Bonds to finance projects that produce electricity from renewable sources, to $1.6 billion.
- An additional $6 billion in loan guarantees for renewable biofuels and electricity transmission projects.
- A 30 percent tax credit for manufacturers of advanced energy machinery equipment and technologies.
- Research and development funding, including $800 million for biomass projects.
- $50 million leading to increased use of biomass from federal and non-federal lands.
Together, these measures will spur rapid development of renewable energy sources and set the stage for a comprehensive energy plan which is currently being formulated in the White House.