Introduced under section 40 of the United States Code, the legislation allows producers of fuels derived from algae, cyanobacteria or lemna to benefit from the tax credit, previously applicable only to cellulosic feedstocks.
The support comes in the wake of many algae-based fuel producers commencing commercial production following considerable research.
US algae industry trade association, Algae Biomass Organization, executive director Mary Rosenthal noted that securing tax parity with other biofuels had been the organization’s priority since its inception.
"This is a huge win for our members and America’s energy security.
"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," Rosenthal added.
