II
112th CONGRESS
1st Session
S. 748
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.
Short title
This Act may be cited as the
Algae-Based Renewable Fuel Promotion
Act of 2011
.
Algae treated as a qualified feedstock for purposes of the cellulosic biofuel producer credit, etc
In general
Subclause (I) of section 40(b)(6)(E)(i) of the Internal Revenue Code of 1986 is amended to read as follows:
is derived solely by, or from, qualified feedstocks, and
.
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:
Qualified feedstock
For purposes of this paragraph, the term qualified feedstock means—
any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, and
any cultivated algae, cyanobacteria, or lemna.
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)—
such sale shall be treated as described in subparagraph (C)(i),
such fuel shall be treated as meeting the requirements of subparagraph (E)(i)(II) in the hands of such taxpayer, and
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.
.
Algae treated as a qualified feedstock for purposes of bonus depreciation for biofuel plant property
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))
.
Conforming amendments
Subsection (l) of section 168 of such Code is amended—
by striking
cellulosic biofuel
each place it appears in the text thereof and
inserting second generation biofuel
,
by striking paragraph (3) and redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively,
by striking Cellulosic
in the
heading of such subsection and inserting Second Generation
,
and
by striking cellulosic
in the
heading of paragraph (2) and inserting second generation
.
Conforming amendments
Section 40 of the Internal Revenue Code of 1986, as amended by subsection (b), is amended—
by striking
cellulosic biofuel
each place it appears in the text thereof and
inserting second generation biofuel
,
by striking
Cellulosic
in the headings of subsections
(b)(6), (b)(6)(E), and (d)(3)(D) and inserting Second generation
,
and
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
.
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
Paragraph (1) of
section 4101(a) of such Code is amended by striking cellulosic
biofuel
and inserting second generation biofuel
.
Effective date
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.
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.