Claiming the Algae-Based Biofuel Tax Credit

Dear ABO Member,

On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012 (“ATRA”), which extended the tax credit for producers of cellulosic biofuel under Section 40 of the Internal Revenue Code and expanded the provision to include the production of algae-based biofuel.

ABO is providing its members with a detailed Q&A on the tax credit prepared by our legislative counsel at K&L Gates. This document includes a history of Section 40 of the IRS code that makes the biofuel credit possible, how it operates, and how the credit can be claimed. It also includes instructions for IRS Form 637, which cellulosic biofuel producers will need to complete, and Form 6478, required when claiming the credit.

The Q&A is intended to be an educational resource for ABO members–it is not a substitute for your own professional tax counsel.

Click here to download the biofuel tax credit Q&A (PDF).

I hope you find the information useful. The accomplishment of finally qualifying algal biofuels for this  tax credit was the result of many years of outreach and hard work by ABO and its members. If you have any questions, don’t hesitate to contact me.



Mary Rosenthal

Executive Director, Algae Biomass Organization

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