Report: Biomass tax credit created $12M in economic activity

Oregon's biomass tax credit has provided economic activity in the lumber industry that was hard hit by a homebuilding slowdown.

Oregon's biomass tax credit has provided economic activity in the lumber industry, which was hard hit by a home building slowdown.

An Oregon Department of Energy-run biomass tax credit program that started in 2010 created some $12 million of economic activity in Oregon in its first year, according to an analysis from University of Oregon.

The effects of the tax credits, which are given to biomass collectors and producers, included stabilization of wood-based fuel prices and the creation of direct and indirect jobs.

According to the report, the biomass tax credit created "an average of about five jobs, nearly $250,000 in wages and benefits, and over $850,000 in total economic activity per 10,000 (bone-dry ton)."

Further the research team from the UO's Institute for a Sustainable Environment concluded that the wood-fuels market "likely supported about 300 jobs, more than $14 million in wages and benefits, and more than $50 million in economic activity in Oregon."

Economic activity generated from the forest biomass tax-credit incentive likely ranged from 1.0 to 2.4 times the cost in foregone tax revenues, according to researchers.

The incentive provided between $30 to $45 per bone-dry ton.

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