1.Inclusion of algae-based
biofuel in renewable fuel programSection 211(o)(1) of the Clean Air Act (42
U.S.C. 7545(o)(1)) is amended—
(1)in subparagraph
(E) by adding at the end the following The term cellulosic
biofuel also includes algae-based biofuel.
, and
(2)by adding the
following new subparagraph at the end thereof:
(M)The term
algae-based biofuel means liquid fuel—
(i)derived from the
biomass of single- or multi-cellular organisms which are inherently aquatic and
classified as non-vascular plants (including microalgae, blue-green algae
(cyanobacteria), and macroalgae (seaweeds)); and
(ii)that has
lifecycle greenhouse gas emissions, as determined by the Administrator, that
are at least 60 percent less than the baseline lifecycle greenhouse gas
emissions.
.
2.Inclusion of
algae-based biofuel in definition of cellulosic biofuel
(a)Cellulosic
biofuel producer credit
(1)Paragraph (4) of section 40(a) of the Internal Revenue Code
of 1986 is amended by inserting and algae-based
after
cellulosic
.
(2)Paragraph
(6) of section 40(b) of such Code is amended—
(A)by inserting
and
algae-based
after Cellulosic
in the
heading,
(B)by striking
subparagraph (A) and inserting the following:
(A)The cellulosic and algae-based biofuel producer credit of
any taxpayer is an amount equal to the applicable amount for each gallon
of—
(i)qualified
cellulosic biofuel production, and
(ii)qualified
algae-based biofuel
production.
,
(C)by redesignating
subparagraphs (F), (G), and (H) as subparagraphs (I), (J), and (K),
respectively,
(D)by inserting
and
algae-based
after cellulosic
in the
heading of subparagraph (I), as so redesignated,
(E)by inserting
or algae-based biofuel, whichever is appropriate,
after
cellulosic biofuel
in subparagraph (J), as so
redesignated,
(F)by inserting
and qualified algae-based biofuel production
after
qualified cellulosic biofuel production
in subparagraph (K), as
so redesignated, and
(G)by inserting after
subparagraph (E) the following new subparagraphs:
(F)Qualified
algae-based biofuel productionFor purposes of this section, the
term qualified algae-based biofuel production means any
algae-based biofuel which is produced by the taxpayer, and which during the
taxable year—
(i)is
sold by the taxpayer to another person—
(I)for use by such
other person in the production of a qualified algae-based biofuel mixture in
such other person's trade or business (other than casual off-farm
production),
(II)for use by such
other person as a fuel in a trade or business, or
(III)who sells such
algae-based biofuel at retail to another person and places such algae-based
biofuel in the fuel tank of such other person, or
(ii)is used or sold
by the taxpayer for any purpose described in clause (i).
The
qualified algae-based biofuel production of any taxpayer for any taxable year
shall not include any alcohol which is purchased by the taxpayer and with
respect to which such producer increases the proof of the alcohol by additional
distillation.(G)Qualified
algae-based biofuel mixtureFor purposes of this paragraph, the
term qualified algae-based biofuel mixture means a mixture of
algae-based biofuel and gasoline or of algae-based biofuel and a special fuel
which—
(i)is
sold by the person producing such mixture to any person for use as a fuel,
or
(ii)is used as a fuel
by the person producing such mixture.
(H)For purposes of this paragraph—
(i)The term algae-based biofuel means any
liquid fuel, including gasoline, diesel, aviation fuel, and ethanol,
which—
(I)is produced from
the biomass of algal organisms, and
(II)meets the
registration requirements for fuels and fuel additives established by the
Environmental Protection Agency under section 211 of the Clean Air Act (42
U.S.C. 7545).
(ii)The term algal organism means a single- or
multi-cellular organism which is primarily aquatic and classified as a
non-vascular plant, including microalgae, blue-green algae (cyanobacteria), and
macroalgae (seaweeds).
(iii)Exclusion of
low-proof alcoholSuch term shall not include any alcohol with a
proof of less than 150. The determination of the proof of any alcohol shall be
made without regard to any added
denaturants.
.
(3)
(A)Subparagraph (D)
of section 40(d)(3) of such Code is amended—
(i)by
inserting and
algae-based
after cellulosic
in the
heading,
(ii)by
inserting or (b)(6)(F)
after (b)(6)(C)
in clause
(ii), and
(iii)by
inserting or algae-based
after such
cellulosic
.
(B)Paragraph (6) of
section 40(d) of such Code is amended—
(i)by
inserting and
algae-based
after cellulosic
in the
heading, and
(ii)by
striking the first sentence and inserting No cellulosic and algae-based
biofuel producer credit shall be determined under subsection (a) with respect
to any cellulosic or algae-based biofuel unless such cellulosic or algae-based
biofuel is produced in the United States and used as a fuel in the United
States.
.
(C)Paragraph (3) of
section 40(e) of such Code is amended by inserting and algae-based
after
cellulosic
in the heading.
(D)Paragraph (1) of
section 4101(a) of such Code is amended—
(i)by
inserting or algae-based
after cellulosic
,
and
(ii)by
inserting and 40(b)(6)(H), respectively
after section
40(b)(6)(E)
.
(b)Special
allowance for cellulosic biofuel plant propertySubsection (l) of
section 168 of the Internal Revenue Code of 1986 is amended—
(1)by inserting
and
algae-based
after cellulosic
in the
heading,
(2)by inserting
and any qualified algae-based biofuel plant property
after
qualified cellulosic biofuel plant property
in paragraph
(1),
(3)by redesignating
paragraphs (4) through (8) as paragraphs (6) through (10), respectively,
(4)by inserting
or qualified algae-based biofuel plant property
after
cellulosic biofuel plant property
in paragraph (7)(C), as so
redesignated,
(5)by striking
with respect to
and all that follows in paragraph (9), as so
redesignated, and inserting with respect to any qualified cellulosic
biofuel plant property and any qualified algae-based biofuel plant property
which ceases to be such qualified property.
,
(6)by inserting
or qualified algae-based biofuel plant property
after
cellulosic biofuel plant property
in paragraph (10), as so
redesignated, and
(7)by inserting after
paragraph (3) the following new paragraphs:
(4)Qualified
algae-based biofuel plant propertyThe term qualified
algae-based biofuel plant property means property of a character subject
to the allowance for depreciation—
(A)which is used in
the United States solely to produce algae-based biofuel,
(B)the original use
of which commences with the taxpayer after December 31, 2008,
(C)which is acquired
by the taxpayer by purchase (as defined in section 179(d)) after December 31,
2008, but only if no written binding contract for the acquisition was in effect
on or before such date, and
(D)which is placed in
service by the taxpayer before January 1, 2013.
(5)
(A)The term algae-based biofuel means any
liquid fuel which is produced from the biomass of algal organisms.
(B)The term algal organism means a single- or
multi-cellular organism which is primarily aquatic and classified as a
non-vascular plant, including microalgae, blue-green algae (cyanobacteria), and
macroalgae
(seaweeds).
.
(c)
(1)Cellulosic
biofuel producer creditThe amendments made by subsection (a)
shall apply to fuel produced after December 31, 2008.
(2)Special
allowance for cellulosic biofuel plant propertyThe amendments
made by subsection (b) shall apply to property purchased and placed in service
after December 31, 2008.