Tax and Investment Provisions Boost Energy from Private Forests and Stimulate the Economy
WASHINGTON, DC (February 17, 2009) —The National Alliance of Forest Owners (NAFO) today applauded enactment of the renewable energy provisions in H.R. 1, the American Recovery and Reinvestment Act of 2009.
“We commend Congress and the President for the priority they are placing on building our nation’s renewable energy infrastructure,” said NAFO President and CEO David P. Tenny. “This bill includes important provisions that will support and strengthen the use of renewable energy in our country, including energy using small trees, wood scraps and other material from private forests. Developing this kind of energy is smart, because it is good for the environment, it produces new jobs in rural communities, and it makes our nation more energy independent.”
H.R. 1 contains a number of tax and funding provisions that promote the development of facilities that generate electricity from wood, plants and waste materials. The bill extends the Section 45 electricity production tax credit for newly completed facilities until the end of 2013. The legislation also allows new facilities completed within this timeframe to elect either a one-time Section 48 investment tax credit or a Department of Treasury grant to offset 30% of construction costs in lieu of the production tax credit.
The bill also provides $6 billion in funding for the Department of Energy’s (DOE) Loan Guarantee Program, a critical source of financing for developers of biofuels from wood and other types of plant cellulose, and $2.5 billion for research and development and technology transfer through the DOE’s Energy Efficiency Renewable Energy Program, including $800 million specifically for wood and plant energy.
“These investments will help provide exactly the kind of stimulus we need to grow both our renewable energy capabilities and our economy,” Tenny said. “Forest owners are prepared and eager to make a significant contribution on both fronts.”
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NAFO is a growing alliance of private forest owners, managers and organizations dedicated to promoting legislative and market policies that will protect and enhance the economic and environmental value of privately owned forests across the country. NAFO members represent over 74 million acres of private forests in 47 states.
Tags: biomass
