The Energy Policy Act (EPACT) has been put on hold until Congress reconvenes in January, 2004. The EPACT passed in the U.S. House of Representatives but stalled in the Senate.
Although the majority of Senators favored passage, Senate Rules require that 60 out of 100 Senators must agree to end debate on any Bill. There were only 58 Senators who were in favor of ending debate -- two short of the required 60.
The proposed EPACT includes numerous new Federal Income Tax Incentives for Renewable Energy including Biomass Energy.
To Review all provisions for Biomass Energy CLICK HERE and then print pages 12 to 23. Provisions specific to energy crops are found on page 17 (note: this is a PDF document).
Some major provisions of the proposed EPACT include:
Extending the Section 45 Tax Credit through 2007.
Allowing all Power Plants to qualify for the Tax Credit.
This includes biomass co-firing in older coal units.
Expansion of Sec. 45 to include biomass waste streams.
The Tax Credit for Biomass Wastes is reduced by one-third.
For example, the Tax Credit for energy crops (closed loop biomass) is currently 1.8 cents/kWh. The Tax Credit for waste stream biomass (open loop) would currently be 1.2 cents/kWh.