US Congress passes algae biofuel tax credit legislation
The US House of Representatives has passed a new law this week seeking to give algae-based biofuels parity with cellulosic biofuels in federal tax credit programs.
The Algae-based Renewable Fuel Promotion Act (HR 4168) means algae biofuel projects could access a $1.01 per gallon production tax credit and 50% bonus depreciation for biofuel plant property.
The bill sponsored by New Mexico Congressman Harry Teague amended Internal Revenue Codes to expand the cellulosic biofuel definition.
Mary Rosenthal, Executive Director of the Algal Biomass Organization trade group, said: “Today, the House sent an unmistakable message of bipartisan support to the hundreds of companies, scientists, entrepreneurs and government agencies working to accelerate the development of algae-based fuels, which will create jobs, decrease emissions and reduce our nation’s dependence on imported fossil fuels.”
“The passage of this bill is a huge first step towards our goal of creating parity for algae-based biofuels within the tax code and among various other government programs,” added Ms Rosenthal.
The bill’s passage coincided with the start of the 2010 Algal Biomass Summit in Phoenix, Arizona on Tuesday.