In March 2018, President Donald Trump announced a $4.7 trillion plan to promote renewable energy, which would lead to the development of nearly half of the US’s food supply by 2030.
However, biofuel production has been slow to catch on.
“Biosynthesis is still in its infancy and it is not ready for prime time,” said Michael J. Pappas, an energy policy expert at the University of Illinois.
Biofuels are made by growing plants’ cellulosic biofuel from waste.
In a process called biomass conversion, carbon dioxide and other greenhouse gases are released to release carbon-rich hydrogen gas.
The hydrogen is then released back into the atmosphere.
This process is slow, expensive, and difficult to scale up to meet growing demand.
The new administration’s proposed biofuel tax credits for small-scale biofuels could help to speed up the process of biofuel production.
Under the plan, all biofuel products would be taxed at a 15% tax rate, up from the current 10%.
Biofuel taxes will also help fund projects that will help the country transition to sustainable biofules.
“This is a great opportunity for the United States to be a leader in the development and use of biofuel technologies, and for the world to see the benefits of our efforts,” President Trump said in his executive order.
Pending regulatory approval, the tax credits will be available to small and midsize producers in 2018, with the goal of expanding to all US food and agriculture products by 2020.
The program would be a welcome change from the past.
Under President George W. Bush’s biofuers tax credits, the US was the only country in the world that did not levy a tax on any of its products that were not agricultural or livestock feed.
The tax credit, known as the biofuel credit, was created as part of Bush’s tax cut package, which included $2.3 trillion in tax cuts for all US households.
The biofuel credits were intended to encourage investment in the renewable fuel industry, but critics said the credits were an important part of the Bush tax cuts package that were poorly targeted.
The Bush biofuel subsidies were also linked to a huge increase in CO2 emissions, which are tied to the production of bio fuels.
The credits were also controversial in light of the Environmental Protection Agency’s determination that the credits are “likely to cause, contribute to, or accelerate” global warming.
The Trump administration’s tax credits would be an important step forward.
In an op-ed published in The Wall Street Journal on Thursday, Secretary of Energy Rick Perry called the tax credit an important tool to help spur the biofuelles transition.
“The President has committed to ending the tax breaks for biofuentech producers,” Perry wrote.
“We are committed to doing everything we can to ensure the tax cuts will be extended through 2024.”