WASHINGTON — Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC), released a statement today in response to the draft tax reform proposal released by House Ways and Means Committee Chairman Dave Camp.
“While the draft plan falls well short of the goal of ensuring that the multi-trillion dollar global clean energy sector sets up shop in the United States, Chairman Camp should be commended for taking tough positions on many of the most distortive oil and gas subsidies in the federal tax code. Inequitable provisions like percentage depletion, last-in/first-out (LIFO) and various incentives for the production of marginal oil and gas distort investment decision-making and drive capital away from renewable fuels. Chairman Camp is right to point out that only extractive industries are allowed to recover more than their investment under current percentage depletion and depreciation rules. Doing away with these provisions will do little to dissuade oil and gas investment given the magnitude of the opportunity, but will help level the playing field when it comes to investments in next generation fuels of all types.
“While we are not supportive of this proposal’s treatment of the emerging cellulosic and advanced ethanol industry, we look forward to working with the Committee going forward to ensure that the United States puts itself in the best position possible to develop new technologies and commercialize clean energy on American soil.”