Biotechnology Industry Organization asks Senate committee to target tax credits to advanced biofuel, renewable chemical technologies to spur economic growth

WASHINGTON , December 14, 2011 (press release) – Sustained, long-term tax policy is vital to emerging alternative energy technologies seeking to cross the valley of death to commercial scale, and should be targeted at those technologies with the greatest potential to create new jobs, economic growth, energy security and environmental benefits. The Biotechnology Industry Organization today submitted written testimony to the Senate Finance Subcommittee on Energy, Natural Resources and Infrastructure for a hearing titled “Alternative Energy Tax Incentives.”

Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, stated, “We are at a key inflection point and advanced biofuels, renewable chemicals and biobased products have great potential to significantly increase this nation’s energy and national security, while creating thousands of well-paying U.S. jobs. In fact, advanced biofuels production could add 807,000 jobs and reduce U.S. petroleum imports by nearly $70 billion by 2022.

“The renewable chemicals and sustainable biobased products industries are also helping reduce U.S. dependence on foreign sources of energy while creating significant numbers of jobs. The global sustainable chemical industry is expected to grow to $1 trillion by 2022, which provides an important opportunity for U.S. job and export growth. If U.S. companies capture their share of this growth, the industry will create 237,000 direct U.S. jobs as well as a trade surplus within the chemical sector.

“As the 2010 Quadrennial Defense Review notes, the Navy, other branches of the military, and the nation as a whole face a significant national security threat from U.S. dependence on foreign sources of energy. This threat can be significantly reduced with an ample supply of U.S. advanced biofuels.

“Innovative advanced biofuels companies have made great strides in developing new technologies and are poised to build commercial facilities if project financing can be secured in a timely fashion. Supportive, stable federal policy is essential to ensuring that advanced biofuels developers can move forward on these first-of-a-kind commercial projects, which are a critical component of plans to meet the nation’s energy independence and security needs.

“Many federal incentives vital to U.S. advanced biofuels development and commercialization are set to expire in the near-term. To accelerate large scale commercialization of advanced biofuels, renewable chemicals and biobased products, extension and expansion of these incentives is necessary to drive continued investment in the broadest possible set of emerging technologies.”

About BIO

BIO represents more than 1,100 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIO produces BIOtech NOW, an online portal and monthly newsletter chronicling “innovations transforming our world.” Subscribe to BIOtech NOW.

© 2020 Business Wire, Inc., All rights reserved.