WASHINGTON, Dec. 12 /PRNewswire/ -- Biotechnology Industry Organization
(BIO) Executive Vice President Brent Erickson issued the following
statement regarding passage by Congress of H.R. 6111, the Tax Relief and
Health Care Act:
"This legislative package includes an important provision to allow
accelerated depreciation for biorefineries that begin production of
cellulosic biomass ethanol within the next six years. This is a welcome
first step to incentivize construction or conversion of ethanol facilities
to produce transportation fuel from cellulosic biomass through enzymatic
hydrolysis. Much more needs to be done, however, to help reduce risk for
pioneering companies who build the first-generation biorefineries that
convert cellulose to ethanol.
"We thank Sen. Charles Grassley (R-Iowa) for introducing this
legislation that will save taxpayers an estimated $17 million over the next
five years.
"Biotech enzymes have been the key to enabling the use of renewable
cellulosic biomass in the production of ethanol. These advances have served
to drive down the cost of this alternative fuel and spur initial investment
in new facilities. This bill recognizes that the enzyme technology is ready
today and is poised to grow in the very near future.
"This provision, if followed by other incentives, will help overcome
the single greatest hurdle to commercialization of ethanol from cellulosic
biomass -- the construction of the first biorefineries. However, this
emerging industry needs Congress to fund measures already on the books to
accelerate construction of these biorefineries. The Energy Policy Act of
2005 established the Biorefinery Loan Guarantee Program and the Biorefinery
Grants Program to provide the government assurance necessary to help
refiners secure private financing for construction of the first new plants.
These programs must be funded at a level sufficient to mobilize private
financing."
BIO represents more than 1,100 biotechnology companies, academic
institutions, state biotechnology centers and related organizations across
the United States and 31 other nations. BIO members are involved in the
research and development of healthcare, agricultural, industrial and
environmental biotechnology products.
SOURCE Biotechnology Industry Organization
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Related links:
http://www.bio.org/
CONTACT:
Paul Winters of Biotechnology Industry
Organization, +1-202-962-9237
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