Late Monday evening, Kevin Brady (R-TX), Chairman of the House Ways and Means Committee, released a draft tax package that contained a number of priority items which the current Chairman would like to see addressed before he steps down from leading the committee. The legislation includes technical corrections to the Tax Reform bill, a permanent extension for short line railroads, a long term extension with a phase out for biodiesel and a one year retroactive extension for other tax provisions including for open and closed loop biomass as well as the alternative fuel tax credit. Chairman Brady did not share a draft of the legislation previous to its release with Democratic counterparts on Ways and Means or on Senate Finance Committees and caught a number of members off guard.
This proposal is far below the five year extension long proposed by the ABC and falls short of the Senate discussion of one year retroactive (2018) and one year prospective (2019). We will be calling on you, our best advocates, to reach out to members of the Senate Finance Committee to urge them to pass a two year extension through the end of 2019.
Going forward into the new Congress, the outlook for green tech and biofuels is far better. In coming Democratic leadership have already promised to focus on renewable energy and sustainable infrastructure. Should the Section 45 PTC not be extended beyond 2018, it will be one of the first issues the ABC pushes for in 2019 and will hopefully be addressed soon by the new Congress. But we are not giving up the fight to push now for a two year extension.
CALL TO ACTION
We ask that you, our ABC members, contact every member of the Senate Finance Committee and urge them to include a two year extension — through December 31, 2019 — of the section 45 PTC in any end-of-year tax package.
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