[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 748 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 748

To amend the Internal Revenue Code of 1986 to expand the definition of 
 cellulosic biofuel to include algae-based biofuel for purposes of the 
   cellulosic biofuel producer credit and the special allowance for 
                   cellulosic biofuel plant property.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                April 6 (legislative day, April 5), 2011

   Mr. Nelson of Florida (for himself, Mr. Bingaman, and Mr. Kerry) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to expand the definition of 
 cellulosic biofuel to include algae-based biofuel for purposes of the 
   cellulosic biofuel producer credit and the special allowance for 
                   cellulosic biofuel plant property.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Algae-Based Renewable Fuel Promotion 
Act of 2011''.

SEC. 2. ALGAE TREATED AS A QUALIFIED FEEDSTOCK FOR PURPOSES OF THE 
              CELLULOSIC BIOFUEL PRODUCER CREDIT, ETC.

    (a) In General.--Subclause (I) of section 40(b)(6)(E)(i) of the 
Internal Revenue Code of 1986 is amended to read as follows:
                                    ``(I) is derived solely by, or 
                                from, qualified feedstocks, and''.
    (b) Qualified Feedstock; Special Rules for Algae.--Paragraph (6) of 
section 40(b) of the Internal Revenue Code of 1986 is amended by 
redesignating subparagraphs (F), (G), and (H) as subparagraphs (H), 
(I), and (J), respectively, and by inserting after subparagraph (E) the 
following new subparagraphs:
                    ``(F) Qualified feedstock.--For purposes of this 
                paragraph, the term `qualified feedstock' means--
                            ``(i) any lignocellulosic or hemicellulosic 
                        matter that is available on a renewable or 
                        recurring basis, and
                            ``(ii) any cultivated algae, cyanobacteria, 
                        or lemna.
                    ``(G) Special rules for algae.--In the case of fuel 
                which is derived by, or from, feedstock described in 
                subparagraph (F)(ii) and which is sold by the taxpayer 
                to another person for refining by such other person 
                into a fuel which meets the requirements of 
                subparagraph (E)(i)(II)--
                            ``(i) such sale shall be treated as 
                        described in subparagraph (C)(i),
                            ``(ii) such fuel shall be treated as 
                        meeting the requirements of subparagraph 
                        (E)(i)(II) in the hands of such taxpayer, and
                            ``(iii) except as provided in this 
                        subparagraph, such fuel (and any fuel derived 
                        from such fuel) shall not be taken into account 
                        under subparagraph (C) with respect to the 
                        taxpayer or any other person.''.
    (c) Algae Treated as a Qualified Feedstock for Purposes of Bonus 
Depreciation for Biofuel Plant Property.--
            (1) In general.--Subparagraph (A) of section 168(l)(2) of 
        the Internal Revenue Code of 1986 is amended by striking 
        ``solely to produce cellulosic biofuel'' and inserting ``solely 
        to produce second generation biofuel (as defined in section 
        40(b)(6)(E))''.
            (2) Conforming amendments.--Subsection (l) of section 168 
        of such Code is amended--
                    (A) by striking ``cellulosic biofuel'' each place 
                it appears in the text thereof and inserting ``second 
                generation biofuel'',
                    (B) by striking paragraph (3) and redesignating 
                paragraphs (4) through (8) as paragraphs (3) through 
                (7), respectively,
                    (C) by striking ``Cellulosic'' in the heading of 
                such subsection and inserting ``Second Generation'', 
                and
                    (D) by striking ``cellulosic'' in the heading of 
                paragraph (2) and inserting ``second generation''.
    (d) Conforming Amendments.--
            (1) Section 40 of the Internal Revenue Code of 1986, as 
        amended by subsection (b), is amended--
                    (A) by striking ``cellulosic biofuel'' each place 
                it appears in the text thereof and inserting ``second 
                generation biofuel'',
                    (B) by striking ``Cellulosic'' in the headings of 
                subsections (b)(6), (b)(6)(E), and (d)(3)(D) and 
                inserting ``Second generation'', and
                    (C) by striking ``cellulosic'' in the headings of 
                subsections (b)(6)(C), (b)(6)(D), (b)(6)(H), (d)(6), 
                and (e)(3) and inserting ``second generation''.
            (2) Clause (ii) of section 40(b)(6)(E) of such Code is 
        amended by striking ``Such term shall not'' and inserting ``The 
        term `second generation biofuel' shall not''.
            (3) Paragraph (1) of section 4101(a) of such Code is 
        amended by striking ``cellulosic biofuel'' and inserting 
        ``second generation biofuel''.
    (e) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuels sold or 
        used after the date of the enactment of this Act.
            (2) Application to bonus depreciation.--The amendments made 
        by subsection (c) shall apply to property placed in service 
        after the date of the enactment of this Act.
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