Sponsored by Rep. Harry Teague {NM-2] and 13 others, the bill amends the Internal Revenue Code to:

1. expand the definition of cellulosic biofuel to include algae-based biofuel for purposes of the cellulosic biofuel producer tax credit; and
2. allow accelerated depreciation of property used to produce algae-based biofuel.

This would give algae-based biofuel tax parity with cellulosic biofuels with respect to a $1.01 per gallon production tax credit and a 50% bonus depreciation for biofuel plant property.

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.

—Mary Rosenthal, Executive Director of the Algal Biomass Organization