Algae-based Renewable Fuel Promotion Act of 2010 - Amends the Internal Revenue Code to modify the definition of "cellulosic biofuel" for purposes of the cellulosic biofuel producer tax credit and the special depreciation allowance to mean any liquid fuel which is derived solely from qualified feedstocks. Defines "qualified feedstocks" as any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis and any cultivated algae, cyanobacteria, or lemna.
Provides for compliance of the budgetary effects of this Act with the Statutory Pay-As-You-Go Act of 2010.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4168 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 4168
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 HOUSE OF REPRESENTATIVES
December 1, 2009
Mr. Teague (for himself, Mr. Bilbray, and Mr. Inslee) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
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 2009''.
SEC. 2. INCLUSION OF ALGAE-BASED BIOFUEL IN DEFINITION OF CELLULOSIC
BIOFUEL.
(a) Cellulosic Biofuel Producer Credit.--
(1) General rule.--Paragraph (4) of section 40(a) of the
Internal Revenue Code of 1986 is amended by inserting ``and
algae-based'' after ``cellulosic''.
(2) Definitions.--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) In general.--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 production.--
For 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 mixture.--For
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) Algae-based biofuel.--For purposes of this
paragraph--
``(i) In general.--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) Algal organism.--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 alcohol.--
Such 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) Conforming amendments.--
(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 Property.--
Subsection (l) of section 168 of such Code 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 property.--The
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) Algae-based biofuel.--
``(A) In general.--The term `algae-based biofuel'
means any liquid fuel which is produced from the
biomass of algal organisms.
``(B) Algal organism.--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) Effective Dates.--
(1) Cellulosic biofuel producer credit.--The amendments
made by subsection (a) shall apply to fuel produced after
December 31, 2008.
(2) Special allowance for cellulosic biofuel plant
property.--The amendments made by subsection (b) shall apply to
property purchased and placed in service after December 31,
2008.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Mr. Van Hollen moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H7070-7073)
DEBATE - The House proceeded with forty minutes of debate on H.R. 4168.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H7070-7071)
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H7070-7071)
Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 639.
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