The American Taxpayer Relief Act of 2012, also known as the “fiscal cliff bill,” approved by both the Senate and House this week includes extensions of three key ethanol related tax credits.
The bill extends for one year a $1.01-per-gallon tax credit for cellulosic ethanol made from corn plants, grasses, algae, and sources other than corn kernels. The bill also extends the alternative fuel infrastructure tax credit allowing ethanol makers to depreciate equipment for new plants placed in service between December 31, 2012 and January 1, 2014. The legislation also specifies that algae is treated as a qualified feedstock for the purposes of bonus depreciation for biofuel plant property. In addition, the bill extends the tax credit for alternative fuel vehicle refueling property through December 31, 2013.
