A bill meant to give tax breaks to companies working on algae feedstocks-generated biofuel has been approved by the US House of Representatives. The Algae-based Renewable Fuel Promotion Act (HR 4168) was sponsored by New Mexico Congressman Harry Teague and has a corresponding bill in the Senate that was introduced by Senator Bill Nelson (D, Florida) which is awaiting action after being referred to the Senate Finance Committee.

Teague’s HR 4168 modifies the Internal Revenue Coded such that algae-based fuels can qualify for benefits now going to cellulosic biofuel makers. The bill includes a USD 1.01 per gal production tax credit and 50 per cent bonus depreciation for property employed to produce algae-based biofuel.

The bill defines "algae-based biofuel" as “any liquid fuel which is produced from the biomass of an algal organism (in essence, an organism that is primarily aquatic and classified as a non-vascular plant),” according to the Congressional Research Service, Feedstuffs reports.

Click here for full article