RENEW Wisconsin sent the below letter of support for the Biomass Thermal Utilization Act, which would extend a 30% investment tax credit to high efficiency biomass thermal energy systems, to Wisconsin’s Senators Baldwin and Johnson, and Representatives Duffy, Grothman, Kind, Moore, Pocan, Ribble, Ryan, and Sensenbrenner.
I am writing to communicate RENEW Wisconsin’s strong support for the Biomass Thermal Utilization Act (BTU Act), sponsored by Senators King and Collins and Congressmen Welch and Gibson. If adopted, the provisions of the BTU Act will help accelerate installation of high efficient biomass thermal systems in communities around the country. This would drive economic development up and down the biomass value chain, including the creation of new jobs to serve the biomass fuel delivery infrastructure needed to supply these systems.
The BTU Act would add biomass thermal energy technologies to Sections 25D and 48 of the tax code, therefore extending a 30% investment tax credit to high efficiency biomass thermal energy systems. This would level the playing field with other renewable energy technologies that already qualify for investment tax credits. While biomass thermal does not need a permanent investment credit, the high initial capital cost is the major obstacle to broader market adoption. The current tax structure is unfair to biomass thermal technologies and is hindering the industry’s growth.
The proposal was scored by the Joint Committee on Taxation at $134 million over 10 years. RENEW Wisconsin supports a 5-year authorization which reduces its estimated cost to the U.S. Treasury to $67 million.
Please vote in support of the BTU Act (S. 727 and H.R. 1145) during the next legislative session, so the biomass thermal energy industry will begin 2017 driving economic development on a level playing field with other renewable energy technologies.
Executive Director, RENEW Wisconsin