News & Insights

Congress Extends Tax Incentives for Energy Production and Conservation

Tax Development Feb 23, 2018

As Ryan previously reported, the Bipartisan Budget Act of 2018, which Congress passed on February 9, 2018, contained a number of tax extenders, including a one-year retroactive extension of the Energy Efficient Commercial Building Deduction. The legislation also extends through 2017 a variety of other credits and incentives relating to energy production and conservation:

  • Credit for production of cellulosic biofuels
  • Existing $1.00 per gallon credit for biodiesel and biodiesel mixtures
  • Small agri-biodiesel producer credit of 10 cents per gallon 
  • Production tax credit for certain renewable sources of electricity to facilities for which construction had commenced by the end of 2017
  • Special, 50% bonus depreciation allowance for cellulosic biodiesel facilities
  • $0.50 per gallon alternative fuel credit and alternative fuel mixture credit

And, while not a credit or incentive, the law also extends the oil spill liability tax on certain petroleum products. An excise tax of $0.09 per barrel is imposed on crude oil received at a refinery and petroleum products entered into the U.S. This tax, which expired at the end of 2017, is reinstated effective March 1, 2018 (and expires again on December 31, 2018).


Brian Browdy