S 1250 ISCommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

June 11, 2009CommentsClose CommentsPermalink

Mr. NELSON of Florida (for himself, Mr. CRAPO, Mr. BINGAMAN, Mr. BENNET, Mr. MARTINEZ, Mr. CARDIN, and Mr. BROWNBACK) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Algae-based Renewable Fuel Promotion Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. INCLUSION OF ALGAE-BASED BIOFUEL IN DEFINITION OF CELLULOSIC BIOFUEL.

(a) Cellulosic Biofuel Producer Credit-CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(2) DEFINITIONS- Paragraph (6) of section 40(b) of such Code is amended--CommentsClose CommentsPermalink





(A) by inserting ‘AND ALGAE-BASED’ after ‘CELLULOSIC’ in the heading,CommentsClose CommentsPermalink





(B) by striking subparagraph (A) and inserting the following:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) qualified cellulosic biofuel production, andCommentsClose CommentsPermalink





‘(ii) qualified algae-based biofuel production.’,CommentsClose CommentsPermalink





(C) by redesignating subparagraphs (F), (G), and (H) as subparagraphs (I), (J), and (K), respectively,CommentsClose CommentsPermalink





(D) by inserting ‘AND ALGAE-BASED’ after ‘CELLULOSIC’ in the heading of subparagraph (I), as so redesignated,CommentsClose CommentsPermalink





(E) by inserting ‘or algae-based biofuel, whichever is appropriate,’ after ‘cellulosic biofuel’ in subparagraph (J), as so redesignated,CommentsClose CommentsPermalink





(F) by inserting ‘and qualified algae-based biofuel production’ after ‘qualified cellulosic biofuel production’ in subparagraph (K), as so redesignated, andCommentsClose CommentsPermalink





(G) by inserting after subparagraph (E) the following new subparagraphs:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) is sold by the taxpayer to another person--CommentsClose CommentsPermalink





‘(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),CommentsClose CommentsPermalink





‘(II) for use by such other person as a fuel in a trade or business, orCommentsClose CommentsPermalink





‘(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, orCommentsClose CommentsPermalink





‘(ii) is used or sold by the taxpayer for any purpose described in clause (i).CommentsClose CommentsPermalink





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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) is sold by the person producing such mixture to any person for use as a fuel, orCommentsClose CommentsPermalink





‘(ii) is used as a fuel by the person producing such mixture.CommentsClose CommentsPermalink





‘(H) ALGAE-BASED BIOFUEL- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) IN GENERAL- The term ‘algae-based biofuel’ means any liquid fuel, including gasoline, diesel, aviation fuel, and ethanol, which--CommentsClose CommentsPermalink





‘(I) is produced from the biomass of algal organisms, andCommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(3) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Subparagraph (D) of section 40(d)(3) of such Code is amended--CommentsClose CommentsPermalink





(i) by inserting ‘AND ALGAE-BASED’ after ‘CELLULOSIC’ in the heading,CommentsClose CommentsPermalink





(ii) by inserting ‘or (b)(6)(F)’ after ‘(b)(6)(C)’ in clause (ii), andCommentsClose CommentsPermalink





(iii) by inserting ‘or algae-based’ after ‘such cellulosic’.CommentsClose CommentsPermalink





(B) Paragraph (6) of section 40(d) of such Code is amended--CommentsClose CommentsPermalink





(i) by inserting ‘AND ALGAE-BASED’ after ‘CELLULOSIC’ in the heading, andCommentsClose CommentsPermalink





(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.’CommentsClose CommentsPermalink





(C) Paragraph (3) of section 40(e) of such Code is amended by inserting ‘AND ALGAE-BASED’ after ‘CELLULOSIC’ in the heading.CommentsClose CommentsPermalink





(D) Paragraph (1) of section 4101(a) of such Code is amended--CommentsClose CommentsPermalink





(i) by inserting ‘or algae-based’ after ‘cellulosic’, andCommentsClose CommentsPermalink





(ii) by inserting ‘and 40(b)(6)(H), respectively’ after ‘section 40(b)(6)(E)’.CommentsClose CommentsPermalink





(b) Special Allowance for Cellulosic Biofuel Plant Property- Subsection (l) of section 168 of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(1) by inserting ‘and Algae-Based’ after ‘Cellulosic’ in the heading,CommentsClose CommentsPermalink





(2) by inserting ‘and any qualified algae-based biofuel plant property’ after ‘qualified cellulosic biofuel plant property’ in paragraph (1),CommentsClose CommentsPermalink





(3) by redesignating paragraphs (4) through (8) as paragraphs (6) through (10), respectively,CommentsClose CommentsPermalink





(4) by inserting ‘or qualified algae-based biofuel plant property’ after ‘cellulosic biofuel plant property’ in paragraph (7)(C), as so redesignated,CommentsClose CommentsPermalink





(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.’,CommentsClose CommentsPermalink





(6) by inserting ‘or qualified algae-based biofuel plant property’ after ‘cellulosic biofuel plant property’ in paragraph (10), as so redesignated, andCommentsClose CommentsPermalink





(7) by inserting after paragraph (3) the following new paragraphs:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) which is used in the United States solely to produce algae-based biofuel,CommentsClose CommentsPermalink





‘(B) the original use of which commences with the taxpayer after December 31, 2008,CommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(D) which is placed in service by the taxpayer before January 1, 2013.CommentsClose CommentsPermalink





‘(5) ALGAE-BASED BIOFUEL-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘algae-based biofuel’ means any liquid fuel which is produced from the biomass of algal organisms.CommentsClose CommentsPermalink





‘(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).’.CommentsClose CommentsPermalink





(c) Effective Dates-CommentsClose CommentsPermalink





(1) CELLULOSIC BIOFUEL PRODUCER CREDIT- The amendments made by subsection (a) shall apply to fuel produced after December 31, 2008.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink