Paper Companies May Lose ‘Black Liquor’ Credit
WASHINGTON, DC—Paper manufacturers are scratching their heads in disbelief at the bill that has been attached to the health care reform legislation bound for the House floor this week, according to the New York Times. The measure could save Uncle Sam $24 billion in biofuel tax credits over 10 years—and help offset the costs of the health care legislation—by restricting the paper industry from claiming an incentive for use of a fuel called “black liquor.”
The bill would restrict the paper industry from eligibility for the $1.01 a gallon cellulosic biofuel tax credit that was included in the 2008 farm bill, according to the Times. Health care legislation was expected to hit the House floor either today or Saturday.