As part of the bi-partisan “Fiscal Cliff” legislation passed by Congress and signed by President Obama algae-derived fuels are, for the first time ever, a “qualified feedstock” under section 40 of the United States Code, meaning that producers of algal fuel are eligible for a $1.01 per gallon tax credit.
This is a big victory for the algae industry and has been a key legislative priority for ABO since our founding in 2008.
By leveling the playing field, this legislation will help foster the continued investment in algae technology companies as well as accelerate the commercial production and the sale of algae-based fuels. The bill also includes language that extends a special depreciation allowance on biofuel plant property to producers using algae.
Colorado’s KUNC public radio has some perspective on what the new policy will mean for algae research and commercialization.
